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The GST sin list: Tobacco to aerated drinks, what will attract the 40% tax rate?

23 2
05.09.2025

Kolkata: In the biggest GST reform undertaken since the tax was rolled out in 2017, the Centre reserved a 40% tax rate for a handful of goods considered luxury and “sinful”, which could be considered harmful for health. As announced by the Centre, the new rates will kick in from September 22 2025 except for some items which will be separately dealt with. The 40% rate is far higher than the 28% in which these items are now taxed.

On the whole, the new GST structure will have two rates 5% and 18% and discontinue the 12% and 28% slabs. Let’s have a look at the list of the sin goods, taxing which the government wants to raise a part of the revenue sacrificed to bring down the overall revenue raised from the huge basket that will generate lower resources for the government henceforth.

Tobacco products perhaps occupies the top of the list in terms of usage which the government and health experts want the people to discourage.

Tobacco........

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