New Delhi, March 3 -- India's taxation framework for non-alcoholic beverages stands out as one of the most onerous in the world. With the introduction of the goods and services tax (GST) in 2017, the central government intended to simplify multiple indirect taxes and foster a uniform market.

Yet, when it comes to beverages-particularly carbonated drinks-the policy has resulted in a tax burden that not only diverges significantly from international norms, but also hampers the ease of doing business.

Under the GST regime, beverages like aerated drinks (taxed at a rate as high as 40% before GST) were assigned a standard rate of 28%. To address potential revenue losses for states, the Subramanian Committee recommended an additional 12% comp...