40 pc GST: Full list of ‘sin goods’, luxury items and IPL match tickets
The new GST regime will come into effect from September 22, the first day of Navaratri
The GST Council on Wednesday (September 3) approved simplifying the GST from the current four slabs – 5, 12, 18 and 28 per cent, to a two-rate structure – 5 and 18 per cent and also introduced a special 40 per cent slab, the highest in the Goods and Services Tax (GST) regime, for a select few items including IPL match tickets.
The new GST regime will come into effect from September 22, the first day of Navaratri.
‘Sin goods’ attract 40 per cent
The 40 per cent slab includes “sin goods” and luxury items. Sin goods are those considered harmful to health and society. Pan masala, tobacco, gutka, cigarettes, and sugary beverages fall under this category.
Also read: Centre rolls out new GST regime: Only 5 pc and 18 pc slabs from Sep 22
In a statement, the Ministry of Finance said, “Rationalisation of the current 4-tiered tax rate structure into a citizen-friendly ‘Simple Tax’ – a 2 rate structure with a Standard Rate of 18% and a Merit Rate of 5%; a special de-merit rate of 40% for a select few goods and services.”
It has been decided that the GST will be levied on Retail Sale Price (RSP) instead of transaction value on pan masala, gutkha, cigarettes, unmanufactured tobacco, and chewing tobacco, like zarda, the ministry said.
Loan and interest payment obligations
The changes in GST rates for all goods, except pan masala, gutkha, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco, and bidis, will be implemented with effect from September 22.
Also read: Why new GST rates are a shot in the arm for auto industry
“Pan Masala, gutkha, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and bidi will continue at the existing rates of GST and compensation cess where applicable, till loan and interest payment obligations under the compensation cess account are completely discharged,” the finance ministry said.
Full list of “sin goods” and luxury items under 40 per cent GST slab
Pan masala
All goods (including aerated waters), containing added sugar or other sweetening matter or flavoured
Other non-alcoholic beverages
Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice
Caffeinated Beverages
Unmanufactured tobacco; tobacco refuse (other than tobacco leaves)
Cigars, cheroots, cigarillos, and cigarettes, of tobacco or of tobacco substitutes
Other manufactured tobacco and manufactured tobacco substitutes; “homogenised” or “reconstituted” tobacco; tobacco extracts and essences
Products containing tobacco or reconstituted tobacco and intended for inhalation without combustion
Products containing tobacco or nicotine substitutes and intended for inhalation without combustion
Motor vehicles with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion, of engine capacity exceeding 1200cc or of length exceeding 4000 mm
Motor vehicles with both a compression-ignition internal combustion piston engine (diesel-or semi diesel) and electric motor as motors for propulsion, of engine capacity exceeding 1500 cc or of length exceeding 4000 mm
Motorcycles of engine capacity exceeding 350 cc
Aircraft for personal use
Yacht and other vessels for pleasure or sports
Revolvers and pistols
Smoking pipes (including pipe bowls) and cigar or cigarette holders, and parts thereof
Indian Premier League (IPL) cricket match tickets
Admission to casinos, race clubs, any place having casinos or race clubs
Specified Actionable Claims (betting, casinos, gambling, horse racing, lottery, online money gaming) defined as goods