While a new two-tier GST structure was widely expected, Union Finance Minister Nirmala Sitharaman announced a third slab, 40 per cent GST on sin goods, aerated drinks and ultra-luxury goods. Sitharaman added the existing tax structure of 28 per cent on tobacco and other sin goods will continue until loan dues are cleared.
Announcing the new GST structure, Sitharaman said, "Special GST rate of 40 per cent to be levied on pan masala, tobacco products, cigarettes, and aerated drinks containing added sugar." She added the existing 28 per cent GST will continue until the loans are repaid, which she believes could happen within the current financial year.
Sitharaman added that motorcycles over 350cc, aircraft for personal use, yacht for pleasure will attract 40 pc GST. She added carbonated drinks containing sugar, and other sweetening matter will come under this slab.
- this is a developing story.
