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GST Reforms: THESE Products Will Attract 40% Rates - Check Full List
The GST Council is considering reducing tax slabs from four to two and introducing a 40% rate on sin goods to support economic growth and state revenue, officials said.
- The 56th GST Council meeting began on September 3, 2025, in New Delhi to discuss a major tax reform proposal across sectors including FMCG and automotive.
- The meeting follows opposition-ruled states' concerns about revenue loss from scrapping 12 and 28 percent GST slabs and seeking compensation from the Centre.
- The reform proposes reducing GST slabs from four to two rates—5 percent for most common goods and 18 percent for many others—while imposing a 40 percent rate on sin and luxury goods.
- Finance Minister Sitharaman will announce the final decision on September 4, amid expectations that compensation cess will end after loan repayments in October-November 2025.
- If approved, the reforms could ease classification disputes, correct inverted duty issues, and lower prices on consumer durables, but initial revenue impact concerns remain.
31 Articles
31 Articles
Kerala reiterates demand for protected revenue at GST council meet, says GST rate rejig would bring down State’s revenue by ₹8,000 crore to ₹10,000 crore
Kerala Finance Minister demands revenue protection for States under revamped GST structure, expressing concerns over revenue dip.
Sitharaman Announces Significant Simplification in GST to Dual Rate Structure of 5% and 18%, Decision to Lead to Affordability, Consumption
Get latest articles and stories on India at LatestLY. In a significant simplification in the GST regime, which will benefit the common man, Finance Minister Nirmala Sitharaman on Wednesday announced consolidation of 12% and 18% slabs into a dual rate structure of 5% and 18% besides 40% for sin goods. India News | Sitharaman Announces Significant Simplification in GST to Dual Rate Structure of 5% and 18%, Decision to Lead to Affordability, Consum…
The GST Council meeting has begun. This is the first meeting after PM Modi announced the new GST reform on 15 August. 175 items may become cheaper under this meeting.
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