End of GST compensation cess may not be blessing for 'sin taxed'
New Delhi: GST slab may rise for so-called sin goods as authorities may not want such items to carry less tax burden after comepensation cess ends this fiscal year. Cigarettes and other tobacco products, carbonated drinks and high-end automobiles, currently in the 28% goods and services tax (GST) slab, could see this rise as a part of a cess levied on select products may be subsumed within the levy.
The compensation cess, which ranges from 11% to 290%, ends in March 2026. The GST Council constituted a group of ministers (GoM) on cess to decide on taxation of luxury, sin and demerit goods after this, ET has learnt.
The 10-member GoM, chaired by minister of state for finance Pankaj Chaudhary, will decide on taxation of luxury, sin and demerit goods after the cess tenure ends, a person familiar with discussions told ET.
