The GST council took some big decisions in the 56th apex meeting of the GST council. The GST council took this decision on 3rd September 2025. From now on, there will be 3 kinds of GST slabs, along with 5% and 18% caps.
The council also introduced a special GST slab of 40% which is applicable on products like luxury cars, Singoods, etc. These decisions will be effective from 22nd September.
What is Singoods?
'Sin Goods' are products that can cause harm to human lives, or it can affect the moral prism, just like Alcohol, Tobacco, gambling or betting, or food products with high fat or sugar content.
Ultra luxury products also fall under this singood category.
Here is a list of the categories that will be taxed the highest
1. Tobacco-related products such as pan masala, gutka, chewing tobacco, unmanufactured tobacco and refuse, cigars, cheroots, cigarillos, and substitutes.
2. Aerated, carbonated, sugary, and caffeinated beverages (including fruit drink variants).
3. Motor vehicles including motorcycles exceeding 350 cc, petrol cars above 1,200 cc, and diesel cars above 1,500 cc (or length over 4,000 mm), as well as utility vehicles (SUVs, MPVs, etc.) meeting similar thresholds.
4. Super luxury items such as yachts, personal aircraft (including helicopters), and racing cars.
5. Online gaming, gambling, lotteries, betting, and casino services, including admissions to certain sporting events.
Complete list of ‘sin goods’ under 40% GST slab
1. Pan masala
2. Cigarettes
3. Gutka
4. Chewing tobacco
5. Unmanufactured tobacco and tobacco refuse (excluding leaves)
6. Cigars, cheroots, and cigarillos (including tobacco substitutes)
7. Aerated drinks (sugary/soft drinks)
8. Carbonated beverages, including fruit-based and fruit-juice variants
9. Caffeinated beverages
10. Motorcycles with engine capacity above 350 cc
11. Cars: petrol above 1,200 cc or diesel above 1,500 cc, including large SUVs and luxury vehicles
12. Yachts
13. Personal aircraft (including helicopters)
14. Racing cars
15. Horse racing
16. Betting, casinos
17. Lottery
18. Admissions to casinos, race clubs, and certain sporting events like the IPL
Which companies will benefit from these changes?
Toothpaste, shampoos, soaps, small cars, televisions, air conditioners, and insurance policies have shifted to the reduced slabs of 5% or 18%.
Alcohol is currently not in the list because of the state governments' taxing alcohol.
