The Indian central government-led GST council, after its 56th meeting on September 3, 2025, decided to renovate the prevailing goods and service tax (GST) structure in a ‘two-level’ system to simplify the indirect tax structure in India. From Monday, September 22, 2025, Indian consumers will have an updated ‘two-level’ tax system where commodities sold in the country will fall below the 5% or 18% tax rate, depending on their nature. According to the current norms, GST in India is charged in four sheets – 5%, 12%, 18%and 28%, which the government has now changed. The move of the central government will, in turn, reduce the prices of many products sold in the Indian economy; However, effective Monday will also attract a large set of products from consumers. Here are items with the highest GST from Monday under the revamped GST structure, the highest GST bracket is 18%. However, a special 40% GST plate has been set to replace the mandatory remuneration costs on certain products. “Since it has been decided to terminate the compensation tax levy, it has been merged with GST to maintain tax appearance on most goods,” Finance Minister Nirmala Sitharaman said. 1. Sin goods (cigarettes, Pan Masala, etc.): Sin -goods are items that are generally considered harmful to health and society. These items include products such as cigarettes, Pan Masala, Beii and other tobacco products such as chewing tobacco and gutka, online gambling or play – will be taxed at a 40% GST tariff from Monday, September 22, 2025. Items that fall well under sin – Pan masala, gutka, chew tobacco, cigars, cheroots, sigarillos of tobacco or from tobacco. Other manufactured tobacco and manufactured tobacco substitutes, ‘homogenized’ or ‘re -constituated’ tobacco. Tobacco extracts and being, products containing tobacco or tobacco with reconstituted and intended for inhalation without combustion, etc. 2. Luxury cars: The GST council also imposed a 40% tax rate on four-wheel makers with an internal combustion car (ICE) capacity of more than 1,200cc and a length of 4 meters. Earlier, SUVs or MPVs, which fall under this category, were charged a 28% GST rate and a 22% strike on top of the prize of the former performance. A report on the GST changes by Kotak Institutional Shares shows that even if the government has raised the GST rate to 40%from 28%, customers will now have to pay slightly less for larger cars as the total tax rate has reduced by 10%, compared to the old GST structure. 3. Above 350cc Two-wheelers: The GST Council imposed a 40% tax on two-wheelers above the 350cc engine category, compared to their earlier level of 28% GST and 3% strike. Although the strike charge has now been removed, the price of the two -wheelers above the 350cc capacity will now attract a higher tax rate. 4. Cold drink: soft drinks and other non-alcoholic drinks such as Coca-Cola, Pepsi, Mountain Dew, Fanta, flavored waters will see a price increase as the central government increased the GST rate to 40% compared to their earlier 28% levels. This tax plate will also cover air drinks, carbonated drinks, carbonated fruit drinks or carbonated drinks with fruit juice, etc. 5. Things to become expensive below the 18% tax rate: Restaurant dining, especially at air-conditioned and premium distances, consumer duration, in the refrigerators, pivots, prime minister and air conditioners, beauty and beauty and groory services, at the pivots, prime minister, and air conditioners, beauty and groory services, at salons, and air conditioners, detergents, premier, and air conditioners, detergents, beauty and groory services. Imported appliances, items that will attract GST from Monday 22 September 2025 to the higher 18% plate. The Indian government has raised vice versa, recreational, luxurious and certain lifestyle-related items to rethink the country of the country to reconsider their spending habits in the economy.
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