GST on cigarettes, tobacco, aerated beverages may be hiked to 35%; GST Council decision on Dec 21
The GoM on GST rate rationalisation on Monday (December 2, 2024) decided to hike tax on sin goods like aerated beverages, cigarettes, tobacco and related products to 35% from the present 28%, an official said.
The Group of Ministers (GoM) on rate rationalisation under Bihar Deputy Chief Minister Samrat Chaudhary also decided to rationalise tax rates on apparel.
As per the decision, readymade garments costing up to Rs.1,500 would attract 5% GST, those between Rs.1,500 and Rs.10,000 would attract 18%. Garments costing above Rs.10,000 would attract 28% tax.
In total, the GoM on rate rationalisation will propose tax rate tweaks on 148 items to the GST Council. "The net revenue impact will be positive," an official said.
The GoM report is expected to be discussed by the GST Council -- chaired by Union Finance Minister and comprising her state counterparts -- on December 21. A final decision on GST rate changes will be taken by the council.
"The GoM has agreed to propose a special rate of 35% on tobacco and related products and aerated beverages. The four-tier tax slab of 5, 12, 18, and 28% will continue and a new rate of 35% is proposed by the GoM," said the official.
