The proposed hike in GST on aerated drinks, cigarettes, and tobacco to 35% has made “Tobacco GST” one of the top-trending topics on Google Tuesday morning. According to Google Trends, the topic garnered 10,000 searches, reflecting an extraordinary 700% surge in interest within just four hours.
This potential GST hike represents the first major restructuring of tax rates under the Goods and Services Tax (GST) framework since its introduction seven years ago. A special rate of 35% is being considered for “sin goods,” which include aerated beverages, cigarettes, and tobacco products. The recommendation was finalized during a meeting on Monday by the Group of Ministers (GoM) on rate rationalization, ahead of the GST Council meeting scheduled for December 21.
In addition to the proposed “sin tax” rate, the GoM has suggested changes for over 148 items, including readymade garments.
For garments, the GoM, chaired by Bihar Deputy Chief Minister Samrat Choudhary, proposed a tiered GST structure:
- 5% for items priced up to ₹1,500,
- 18% for those between ₹1,500 and ₹10,000,
- 28% for garments exceeding ₹10,000.
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