After the new GST rates come into effect, pan masala, gutkha, cigarettes, tobacco, and zarda will be subject to a 40 percent cess plus applicable tax. This cess will continue until the outstanding cess-linked loans are cleared.
बचत के दावे के बीच GST 2.0 दरों से चपत भी लगेगी, इन उत्पादों पर अब देना होगा 40% टैक्स
The central government implemented new GST rates on Monday. Under the new GST framework, the government has reduced the number of tax slabs to two – 5 percent and 18 percent – from the previous four – 5 percent, 12 percent, 18 percent, and 28 percent.
In addition, a separate tax of 40 percent has been imposed on sin goods and luxury goods.
What are sin goods?
Sin goods are products that are harmful to health, and to reduce their consumption, the government has placed them under a 40 percent tax bracket.
After the new GST rates come into effect, pan masala, gutkha, cigarettes, tobacco, and zarda will be subject to a 40 percent tax rate plus cess. This cess will continue until the outstanding cess-linked loans are repaid.
These will now be subject to a 40 percent GST.
Cold drinks and sugar-sweetened aerated water will now be subject to a 40 percent GST. However, they previously attracted a 28 percent GST plus a 12 percent cess. Therefore, their prices will remain unchanged.
In addition, race clubs, leasing, casinos, horse racing, and lotteries will be taxed at 40 percent. The GST on IPL tickets has also increased to 40 percent. The government has also imposed a 40 percent tax on aircraft used for personal consumption, up from 28 percent plus a 3 percent cess.
Cars and Bikes
Under the new GST framework, the government has increased the tax on bikes with a capacity of more than 350 cc to 40 percent. This will increase the prices of higher-capacity bikes.
At the same time, the government has increased the tax on petrol vehicles of 1,200 cc and larger than 4 meters and diesel vehicles of 1,500 cc and larger than 4 meters to 40 percent. However, previously, the total tax on these vehicles, including 28 percent GST and cess, was 50 percent. Therefore, with the introduction of the new GST rates, the prices of larger vehicles will also see a reduction.
The GST reform has reduced the tax on approximately 370 products, including everyday essentials and life-saving medicines.
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