Union Finance Minister Nirmala Sitharaman on Sep 3, addressed the media and announced that the GST Council, in its meeting, approved a two-tier structure of 5 per cent and 18 per cent, and a special tax of 40 per cent for luxury and sin goods. Sitharaman said the decision was taken unanimously and will come into effect from September 22, 2025, with the exception of tobacco products, based on certain conditions. 

India cuts Tax rates To spur consumption 

India’s GST Council has rolled out a bold 40% tax slab for super luxury and sin goods  the highest-ever GST rate. From private jets to pan masala, this move targets extravagance while easing the burden on essentials. Here’s a breakdown of what falls under this new slab, what it means for you, and how it fits into the broader GST reform to benefit the common man.

New GST update: Super luxury goods now heavily taxed | 40% tax slab explained! 

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India cuts Tax rates To spur consumption

New GST update: Super luxury goods now heavily taxed | 40% tax slab explained!