Srinagar, Dec 4, The government is planning to raise Goods and Services Tax (GST) on selected goods such as cigarettes, tobacco products, and aerated drinks, by introducing a new slab of 35 percent, sources said.
A group of Ministers has proposed a hike in GST on aerated drinks, cigarettes & tobacco to 35%.
The proposed hike from the current highest slab of 28 per cent would help the Centre and states to make up for the loss from rate cuts on other common-use items in a step that would mark the first major restructuring of tax rates under the GST seven years after its rollout, a special rate of 35 per cent could be carved out for demerit goods such as aerated beverages, cigarettes, tobacco and related products.
Reports said that at a meeting, ahead of the GST Council meeting on December 21, the Group of Ministers (GoM) on rate rationalization finalized its report with this recommendation of a special rate, in addition to proposing a slew of rate tweaks for over 148 items including readymade garments.
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