The GST Council, chaired by Finance Minister Nirmala Sitharaman, cut the current four slabs down to two – scrapping the 12 per cent and 28 per cent rates, while retaining the 5 per cent and 18 per cent slabs.
The council has also increased the tax on pan masala, tobacco products, cigarettes and aerated drinks containing added sugar from 28 per cent to 40 per cent. Motorcycles exceeding 350 cc and aircraft for personal use will also attract 40 per cent GST rate.
It has also raised the tax rate on all goods containing added sugar, sweeteners, or flavours, including aerated waters, from 28 per cent to a steep 40 per cent.