What are sin goods? Nirmala Sitharaman announces 40 pc GST on these items

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.

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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. 

Full list of products charged 40 pc GST

1. Pan masala.
2. All goods (including aerated waters), containing added sugar or other sweetening matter or flavoured.
3. Other non-alcoholic beverages.
4. Carbonated beverages of fruit drink or carbonated beverages with fruit juice.
5. Caffeinated beverages.
6. Unmanufactured tobacco; tobacco refuse (other than tobacco leaves).
7. Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes.
8. Other manufactured tobacco and manufactured tobacco substitutes; “homogenised” or “reconstituted” tobacco; tobacco extracts and essences.
9. Products containing tobacco or reconstituted tobacco and intended for inhalation without combustion.
10. Products containing tobacco or nicotine substitutes and intended for inhalation without combustion.
11. Motor cars and other motor vehicles principally designed for the transport of persons, including station wagons and racing cars.
12. Motor vehicles with both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion, of engine capacity exceeding 1500cc or of length exceeding 4000 mm.
13. Aircraft for personal use.
14. Yacht and other vessels for pleasure or sports.
15. Revolvers and pistols.
16. Smoking pipes (including pipe bowls) and cigar or cigarette holders, and parts thereof.
17. Admission to casinos, race clubs, any place having casinos or race clubs, or sporting events like the IPL.
18. Services by a race club for licensing of bookmakers in such club.
19. Specified actionable claims (betting, casinos, gambling, horse racing, lottery, online money gaming) defined as goods.