GST rates to be revised on 148 items? A special rate of 35% has been raised for tobacco, aerated water, sources said
The Group of Ministers (GoM) on Rates—a high-level panel that decides on changes to the GST rate structure—is expected to propose revising the goods and services tax (GST) rates applicable to certain products while introducing 35 exceptions. average percentage of selected products. A higher rate of 35 percent is proposed each on cigarettes and tobacco-related products, as well as aerated water, from the existing 28 percent, sources told Zee Business.
Similarly, 5 percent GST on ready-made garments up to Rs 1,500, 18 percent on ready-made garments up to Rs 10,000 and 28 percent on those above Rs 10,000 is on the cards, according to sources.
The Group of Ministers is advised to have proposed changes in the standards applicable to 148 items.
The party has also proposed 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 proposed the following GST rates:
|
Section |
Current GST rate |
Proposed GST rate |
|
Tobacco |
28% |
35% |
|
Water has air |
28% |
35% |
|
Watches (worth more than Rs 25,000) |
18% |
28% |
|
Shoes (price above Rs 15,000) |
18% |
28% |
|
Packaged water |
18% |
5% |
|
Notebooks |
12% |
5% |
On the other hand, the panel proposed a lower rate of 5 percent each on combined water and notebooks, from the current 18 percent and 12 percent respectively, according to sources.
