New Delhi: The GST Council has brought in a new 40 percent slab for sin and luxury goods remains, ensuring that items like cigarettes, premium liquor, and high-end cars don’t see tax relief.
Highest GST (28% to 40%)
(Also Read– New GST Rates: Full List Of Items Becoming Cheaper From September 22)
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Unmanufactured tobacco; tobacco refuse [other than tobacco leaves]
Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes
Other manufactured tobacco and manufactured tobacco substitutes; “homogenised” or “reconstituted” tobacco; tobacco extracts and essences
Products containing tobacco or reconstituted tobacco and intended for inhalation without combustion
Products containing tobacco or nicotine substitutes and intended for inhalation without combustion
(Also Read: Nil Tax On These Medicines; Rates Brought Down From 5 And 12%; Check Full List)
Till date, As per Indian GST rules, a four-slab GST system was being followed — 5 percent, 12 percent, 18 percent, and 28 percent — along with an additional cess on sin and luxury goods.
“This reform is not just on rationalising rates, it’s also on structural reforms, ease of living, so that businesses can work together with great ease. We have corrected inverted duty structure problems, we have resolved classification related issues, and we have ensured there will be stability and predictability about the GST Reforms,” Finance Minister Nirmala Sitharaman said in a press briefing.