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Rooh Afza is a fruit drink, VAT applicable on it will be 4% and not 12.5%: SC
short by Bhawana Chaudhary / on Wednesday, 25 February, 2026
The Supreme Court ruled that Hamdard Labs' Rooh Afza is a fruit drink/processed fruit product, and only 4% VAT can be collected on it instead of the 12.5% currently being collected. SC's decision overturned Commercial Tax Tribunal and Allahabad High Court's past decisions. HC had relied on "common parlance test", saying customers demanding fruit juice wouldn't be given Rooh Afza.