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India’s GST Council Approves Dual-Rate Overhaul, Introduces 40% Slab for Sin Goods

According to reports, India’s GST Council has restructured its tax system, replacing the 12% and 28% slabs with a dual-rate structure and adding a new 40% slab for sin goods.

Summary

India’s GST Council has approved a major tax overhaul, introducing a dual-rate structure of 5% for essentials and 18% for non-essentials. The previous 12% and 28% slabs have been scrapped. A new 40% slab has been created for sin goods, including tobacco products and luxury cars priced above ₹50 lakh.

Terms & Concepts
  • GST (Goods and Services Tax): A comprehensive indirect tax levied on the supply of goods and services in India, replacing multiple indirect taxes.
  • Dual-Rate Structure: A taxation framework with two primary rates, applied differently to essential and non-essential goods or services.
  • Sin Goods: Products such as tobacco, alcohol, and luxury items that are taxed at higher rates due to health, social, or economic considerations.