India proposes raising GST on tobacco and sodas to 35%, while essentials get a lower 5% rate.

A committee in India has proposed changes to the Goods and Services Tax (GST) to simplify the tax structure and boost revenue. The new proposals include a higher 35% GST on items like tobacco and sodas, and a 5% GST on essential items such as bicycles and bottled water. Textiles will see varied rates: garments priced up to ₹1,500 will face a 5% GST, those between ₹1,500 and ₹10,000 will face 18%, and items above ₹10,000 will be taxed at 28%. These changes aim to discourage unhealthy habits and support basic necessities. The recommendations will be discussed by the GST Council on December 21.

December 02, 2024
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