Quick Summary
As the Centre advances its plan to simplify the GST rate structure, sin and demerit goods such as cigarettes, chewing tobacco and gutka will remain insulated from any tax relief, official sources said. These products will continue to attract a higher tax burden beyond the proposed GST framework, ensuring that both public health and revenue concerns remain safeguarded. Under the Centre's proposal, the current four-slab GST structure of 5%, 12%, 18%, and 28% would be pruned to a simplified two-ti
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FAQ :
No, 'sin goods' such as cigarettes, chewing tobacco, and gutka will remain subject to high taxes and will not benefit from the proposed GST reforms.
The government is considering moving man-made fabrics from the current 12% GST slab to a lower 5% slab.
This change is intended to boost the textile industry, reduce costs for manufacturers, and enhance competitiveness, especially amidst slowing global demand.
The matter will be discussed during the GST GoM meeting on August 20-21, 2025.
Currently, these goods are taxed heavily through a combination of GST, compensation cess, and other duties, pushing their effective tax incidence well beyond the proposed 40% ceiling rate.
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