New 40% GST Slab Targets Sin & Luxury Goods

The GST Council introduced a 40% tax slab on select luxury and sin items, such as tobacco products, aerated drinks, high-end vehicles, yachts, and gambling services, as part of its simplified two-tier GST structure. The higher rate replaces the earlier GST-plus-cess system, aiming to discourage harmful consumption and preserve tax revenue under GST 2.0.