The Group of Ministers (GoM) on GST rate rationalisation has proposed increasing the tax on products such as aerated beverages, cigarettes, and other tobacco-related items to 35%, up from the current rate of 28%, reported news agency PTI. This decision may be a part of a broader effort to adjust tax rates on certain goods to enhance revenue collection.

The GoM, led by Bihar Deputy Chief Minister Samrat Choudhary, met on Monday to finalise the proposed rate adjustments. Alongside the hike for “sin goods,” changes to the GST structure for apparel and other items were also discussed.

The GoM has proposed tax changes for 148 items in total, with the expectation that the adjustments will have a positive impact on revenue.

The GoM’s report will be presented to the GST Council on December 21, 2024. The council, chaired by the Union Finance Minister and including state finance ministers, will make the final decision on the proposed changes.

“The GoM has agreed to propose a special rate of 35% on tobacco and related products and aerated beverages. The existing four-tier tax structure of 5%, 12%, 18%, and 28% will remain, with the addition of the new 35% rate,” said an official as quoted by