GST Revamp: From Cars to Luxury Goods, What Falls in the 40% Slab?
Finance Minister Nirmala Sitharaman announced major decisions after the 56th GST Council meeting, which will directly impact daily-use items. While the prices of some goods will fall, others will become more expensive.
Finance Minister Nirmala Sitharaman announced major decisions after the 56th GST Council meeting, which will directly impact daily-use items. While the prices of some goods will fall, others will become more expensive.
New GST Slabs
Earlier, there were four slabs of 5%, 12%, 18% and 28%. Now, the 12% and 28% slabs have been abolished. Only 5% and 18% remain, while a new 40% slab has been introduced for luxury and “sin goods.”
What Are Sin Goods?
These are products harmful to health or society, such as tobacco, gutka, pan masala, alcohol, and high-sugar drinks. The government imposes higher taxes on these items to discourage their use, while the revenue is used for welfare schemes.
Also Read: New GST rates: What gets cheaper and costlier from Sep 22
Items Under the 40% Slab
- Vehicles: Petrol cars above 1200cc, diesel cars above 1500cc, bikes over 350cc, station wagons, racing cars.
- Luxury Transport: Private jets, helicopters, yachts, luxury boats.
- Weapons: Revolvers, pistols.
- Tobacco Products: Pan masala, gutka, bidi, cigarettes, raw tobacco leaves.
- Beverages: Fizzy sweet drinks, caffeinated drinks, fruit-based carbonated drinks, other non-alcoholic beverages.
- Online Gambling & Gaming.
Earlier, these items attracted 28% GST plus an additional cess, but now they fall directly under the 40% slab.
Relief for Consumers
Daily essentials like toothpaste, soap, shampoo, small cars, TVs, and ACs have been placed under the 5% or 18% slab, which means their prices will now come down.
