Quick Summary
Union Finance Minister Nirmala Sitharaman has said that 99% of all goods and services under the Goods and Services Tax (GST) now fall within the 0%, 5% or 18% categories, with only 1% taxed as "sin" or "demerit goods." In an exclusive interview, Sitharaman explained that thePrime Minister Narendra Modi-led government's GST 2.0 reforms have streamlined the indirect tax system, eliminating anomalies and duplications. "That is the extent to which we have cleansed the system from anomalies, doub
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FAQ :
The main change is that 99% of all goods and services now fall into the 0%, 5%, or 18% GST tax slabs, simplifying the system.
Only goods classified as 'sin' or 'demerit' items, such as high-end cars, tobacco, cigarettes, online gambling, and aerated drinks, will attract a higher tax rate of 40%.
No, petroleum products and alcohol will remain outside the GST framework for the immediate future.
All varieties of popcorn, regardless of flavour or packaging, will now be taxed at a uniform 5% rate, ending previous classification disputes.
The revised GST slabs are effective from September 22, 2025.
The tax rate for sin goods has been increased from 28% to 40%.
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