The Group of Ministers (GoM) on GST rate rationalisation has proposed increasing the tax on products such as aerated beverages, cigarettes, and other tobacco-related items to 35%, up from the current rate of 28%.
This decision may be a part of a broader effort to adjust tax rates on certain goods to enhance revenue collection.
The GoM, led by Bihar Deputy Chief Minister Samrat Choudhary, met on Monday to finalise the proposed rate adjustments. Alongside the hike for "sin goods," changes to the GST structure for apparel and other items were also discussed.
Costing up to Rs 1,500: Taxed at 5%.
Between Rs 1,500 and Rs 10,000: Taxed at 18%.
Above Rs 10,000: Taxed at 28%.
The GoM has proposed tax changes for 148 items in total, with the expectation that the adjustments will have a positive impact on revenue.