GST Council to discuss proposed tax hike on cigarettes and beverages on December 21

The Group of Ministers (GoM) has proposed increasing the Goods and Services Tax (GST) on cigarettes, tobacco, and aerated beverages to 35% from the current 28%. This change will be discussed by the GST Council on December 21. Additionally, the GoM has recommended new GST rates for readymade garments. Items costing up to ₹1,500 would have a 5% tax, those between ₹1,500 and ₹10,000 would be taxed at 18%, and garments over ₹10,000 would attract a 28% tax. The GoM's report includes proposed changes for 148 items. Previous proposals included reducing GST on packaged drinking water and bicycles, while increasing tax on luxury items like shoes and watches.