As per media reports ,The Group of Ministers (GoM) has reportedly suggested key revisions to India’s Goods and Services Tax (GST) structure.

Proposed GST Changes

1. 35% GST on Tobacco and Aerated Beverages

• Proposed increase from the current 28% to 35%.

2. Revised GST for Ready-Made Garments (RMG)

• Below ₹1,500: 5% GST.

• ₹1,500 to ₹10,000: 18% GST.

• Above ₹10,000: 28% GST.

3. GST Hike on Luxury Goods

• Luxury items such as cosmetics, shoes, handbags, and watches may see higher GST rates depending on their price range.

The proposed changes aim to rationalize tax revenue by targeting high-consumption, non-essential goods. While the government expects these changes to boost revenue, they may also affect consumer spending on these products.

However ,Reports on the 35% GST rate are based on deliberations by the GoM on rate rationalization. It’s essential to understand the GoM includes Finance Ministers from West Bengal (All India Trinamool Congress), Karnataka (Congress), and Kerala (Communist Party of India – Marxist) the three opposition-led states.The GoM’s role is to recommend changes and their decisions are not binding.

Final decisions will be taken by the GST Council, chaired by Union Finance Minister Nirmala Sitharaman.

-Sanyogita