GST Council proposes 2-slab system, 40% tax on sin goods
Big news on the tax front—India's GST Council is looking to ditch the current four-rate system for a much simpler two-slab setup: 5% for essentials and 18% as the standard.
They're also proposing a steep 40% rate just for "sin goods" like tobacco.
The goal? Make taxes easier to understand and fix some long-standing quirks in how things are taxed.
What does this mean for you?
If these changes go through, basics like ultra-high temperature milk might get even cheaper (possibly zero GST), while coal could get pricier with its rate jumping from 5% to 18%.
Luxury items like air conditioners would see their tax drop from 28% to 18%, but super high-end stuff—think fancy cars—could be taxed at a whopping 40%.
The final call is still pending, but if you're keeping an eye on prices or budgeting, it's worth watching what the Council decides next.