Sin goods and super-luxury items to attract 40% tax. Full list of items

GST tax rate change: The highest slab has been designed for luxury and non-essential goods such as high-end vehicles, aerated drinks and tobacco products.

Updated on: Sep 4, 2025, 17:11:53 IST

By HT News Desk

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India’s indirect tax system is set for a major reset from September 22, when a new 40% GST slab comes into force. This change marks the removal of the 12% and 28% brackets, leaving behind just three - 5%, 18% and the newly introduced 40%. The highest slab has been designed mainly for luxury and non-essential goods such as high-end vehicles, aerated drinks and tobacco products. While cigarettes have been slotted into the 40% bracket, this doesn’t automatically mean prices will shoot up - other factors play a role. For pan masala, gutka and chewing tobacco, the higher rate will kick in later due to unresolved technical issues linked to pending industry loans.

Cigarettes, paan masala and gutka will attract 40 per cent GST from September 22. (HT File Photo)

Full list of products that will attract 40% GST

1. Tobacco and Pan Masala (Sin Goods)

Pan masala
Gutka
Chewing tobacco
Unmanufactured tobacco and tobacco refuse (excluding leaves)
Cigarettes
Cigars, cheroots, cigarillos, and similar substitutes

2. Aerated and Sugary Beverages

Carbonated drinks
Cold drinks with sugar
Caffeinated carbonated beverages

3. Luxury Cars

Petrol cars with engine capacity above 1200 cc
Diesel cars with engine capacity above 1500 cc

4. High-End Motorcycles

Motorcycles with engine capacity above 350 cc

5. Super-Luxury Marine and Aircraft

Yachts
Personal aircraft, including helicopters

6. Other Sin or Luxury Items (broader category)

Coal, lignite, peat
Online gambling and gaming services

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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