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GoM proposes fresh band: 35% GST slab likely for tobacco, aerated drinks

The Group of Ministers (GoM) on GST rate rationalization has proposed the introduction of a new 35% GST slab, which would apply to tobacco products and aerated drinks, aiming to simplify the current tax structure. This proposal was discussed in a meeting led by Uttar Pradesh Finance Minister Suresh Khanna, where the panel also considered reducing the number of tax slabs from five to three. The GoM suggested merging the 12% and 18% slabs into a single rate, while retaining the 5% and 28% slabs, with the addition of the new 35% slab. This restructuring is part of a broader effort to streamline GST rates, potentially affecting the taxation of various goods and services, including luxury items and sin goods. The recommendations are set to be forwarded to the GST Council for further deliberation.

Read the Full Business Standard Article at:
[ https://www.business-standard.com/economy/news/gom-proposes-fresh-band-35-gst-slab-likely-for-tobacco-aerated-drinks-124120201194_1.html ]