Many important decisions have been taken in the 56th meeting of the GST Council, which will directly affect our everyday expenses. Now 12% and 18% tax slabs will be over and only 5% and 18%. Meaning many essential items will become cheap. But on the other hand, there has been a huge increase in tax on certain goods. These have been considered as SIN Goods items. Now 40% GST will be imposed on them. The purpose of this decision is to reduce the use of these items and increase the income of the government in health and social welfare works.
What are Sin Goods?
The word sin goods means such things which are considered harmful for people’s health and society. Such as tobacco products, alcohol, gutkha, paan masala etc. The government imposes more tax on these items so that their use can be reduced. Under the previous rules, they used to get a separate cess with 28% GST, which used to bring the total tax to about 40%. Now in the new system, the cess has been removed and a new tax slab of 40% has been made directly, which has made the tax rate simple and clear.
What things will come in 40% GST tax slab?
The items that the GST Council has placed in the category of SIN Goods will be taxed at 40%. These items are mainly divided into two categories.
Luxury Vehicle and Transport-
- Petrol engine
- Diesel engine cars that have a capacity above 1500 cc
- Motorcycles with a capacity of more than 350 cc
- High-ind cars made for passenger transport like station wagon and racing cars
- Private helicopters and airplanes
- Yacht and other luxury boats
Tobacco and things related to it-
- Paan Masala, Gutkha, Bidi, Tobacco Products
- Tobacco and tobacco saw
- Cigar, cigarette holder, smoking pipe
beverage-
- Sugar or sweetener mixed drinks
- Caffeine
- Carbonated fruit drinks or fruit-based drinks
- Other non-alcoholic beverages
What will be affected by the change in tax on the common man?
Earlier these sin Goods used to come at the rate of about 40% due to separate cess with 28% GST. The new 40% GST slab will make this tax straight and easier. Its purpose is to reduce consumption of these products and increase government revenue. The government’s message is clear by increasing taxes on the items which are considered harmful to luxury or health – use them less. This will also lead to steps towards health improvement. New tax rates will be implemented from September 22, which will give relief to the common consumer on many everyday items, but items like sin goods will become a little expensive.