New Delhi: In a major decision, the GST Council has announced that now only two tax slabs will remain under GST — 5 percent and 18 percent. This means that the earlier 12 percent and 28 percent slabs will be removed. Most items that were in those slabs will now be moved into either 5 percent or 18 percent.
This is a big relief for common people, as many essential goods are expected to become cheaper.
40 percent GST on Harmful and Luxury Items
While most items will be taxed less, some harmful and luxury goods will now face a special GST rate of 40 percent. This decision was taken in the 56th GST Council meeting held in New Delhi on Wednesday.
Finance Minister Nirmala Sitharaman shared that this move is aimed at reducing the use of harmful products and ensuring fairness in taxation.
Items to Face 40 percent GST
Here are the goods that will now attract 40 percent GST:
- Pan masala
- Cigarettes and gutkha
- Chewing tobacco and zarda
- Sugary and carbonated drinks
- Luxury cars
- Private aircraft
- Fast food
- Super luxury goods
This 40 percent GST will be the only tax on these products. No extra cess or sub-tax will be added once this high rate applies.
When Will This Start?
The GST Council has not yet announced the exact date from when the 40 percent GST will be applied. This will be declared later.
