New GST Rates: Big tax will be imposed on small gold! How much more expensive will liquor be?, Big shock to cold drink lovers too
To simplify the tax system in the country, the government has taken a big decision to implement GST 2.0. Now there will be only two tax slabs and that is 5% and 18% (New GST Rates). But the special thing is that some selected products have been put in the highest tax i.e. 40% Tax. In simple language, this hobby can now be expensive for those who smoke cigarettes. Also, if you like products like cold drinks, energy drinks or tobacco, then after 22 September 2025, this hobby is going to be more heavy on the pocket.
New GST Rates: How much tax will be levied on alcohol?
After the tax is imposed on sin goods, the first question that comes to the mind of many people is whether alcohol will also become expensive? So let us tell you that in fact GST is not levied on alcohol. Taxes and excise duty of the states are applicable on it. Therefore, this time there will be no direct impact on the price of alcohol. But increasing tax on the rest of the “sin goods” will definitely increase the expenses of the common people and also the income of the government.
Big shock to cold drink lovers
Now you will have to pay 40% GST instead of 28% on Coca-Cola, Pepsi and all other carbonated drinks. Not only this, energy drinks with caffeine and flavored drinks full of sugar have also come in this category. That is, now the prices of these drinks will be higher than before. However, relief has been given to drinks that have fruit pulp or juice-based ingredients. Tax on such non-carbonated drinks has been reduced to just 5%. The same rate will be applicable on soy milk and plant-based milk.
Strictness on cigarettes, tobacco and gutkha too
Cigarettes, gutkha, pan masala and other tobacco products have also been put in the 40% slab. Till now, 28% GST and additional cess were levied on cigarettes. Due to which the total tax reaches about 88%. In the new structure also, the government has made it clear that the existing tax and cess on tobacco products will continue till the old debts are fully repaid.
Impact on luxury vehicles and expensive goods
Now you will have to loosen your pocket more for big cars and luxury vehicles. 40% GST will be levied on petrol cars with engine capacity of more than 1200cc and diesel vehicles above 1500cc. Also, some imported and luxury products have also been put in this tax slab.
Why so much tax was imposed?
The government’s argument is that all these are sin goods i.e. things that are harmful for health and society. Increasing tax on them on one hand stops the consumption of people and on the other hand the government gets additional revenue. This money will be spent on health and welfare schemes.
Impact on your pocket
If you are fond of products like cold drinks, energy drinks or tobacco, then now you will have to pay more money for them. There is no direct impact on liquor at the moment, but those who purchase other sin goods and luxury items are sure to face a big blow.
