35% GST On Tobacco & Aerated Beverages, Hike On Other Items Including Cosmetics and Handbags: Report | Representational Image
The first Winter session of the 18th Lok Sabha is currently underway, and some crucial legislative pieces are expected to be introduced in this session.
Amidst the chaos of myriad adjournments, another pertinent news has emerged. According to multiple reports that have been circulating over the past few hours the Union Government is expected to impose a new tranche of taxes or ‘special rate’ on multiple products.
The biggest highlight of this report is a flat 35 per cent additional tax on tobacco and tobacco-related products (gutka, cigarettes etc).
In addition, this 35 per cent rate is also expected to be imposed on aerated beverages (Pepsi, Coca-Cola, Fanta, etc).In addition, the government is also expected to impose a 5 per cent GST on ready-made garments or RMGs worth Rs 1,500. And others costing between Rs 1,500 and Rs 10,000 may attract 18 per cent GST. Also, RMGs worth more than Rs 10,000 may attract a GST of 28 per cent, which is currently the highest slab in the country.
Apart from the aforementioned changes, the government is also expected to hike GST rates on other major consumer products. This includes watches, cosmetics, shoes, and handbags, apart from other goods.
