GST rates to be revised for 148 items? Special 35% rate proposed for tobacco, aerated water, say sources

The Group of Ministers (GoM) on Rate Rationalisation—a high-level panel that decides changes in the GST rate structure—is learned to have proposed to revise the goods and services tax (GST) rates applicable to certain products while introducing a special 35 per cent rate for select products. A higher rate of 35 per cent is proposed each on tobacco and tobacco-related products, and aerated water, from the existing 28 per cent, sources told Zee Business.

Similarly, a 5 per cent GST on readymade garments up to Rs 1,500, 18 per cent on readymade garments up to Rs 10,000 and 28 per cent on those above Rs 10,000 is on the cards, according to sources. 

The Group of Ministers is learned to have suggested changes in the rates applicable to 148 items. 

The group has also suggested higher GST rates on items such as leather bags, cosmetics and luxury items. 

List of proposed changes in GST rates

According to sources, the Group of Ministers has suggested the following GST rates: 

On the other hand, the panel has suggested a lower rate of 5 per cent each on packaged water and notebooks, from the current 18 per cent and 12 per cent respectively, according to sources.