Ultra-luxury items will attract a 40 per cent levy, while tobacco and related products will remain under the 28 per cent plus cess category

The rollout of the restructured two-tier Goods and Services Tax (GST) on September 22 marks yet another watershed moment in the history of India’s tax administration. From multiple tax administrations and a plethora of indirect taxes, the country transitioned in 2017 to a unified tax administration under the GST Council — excluding a few products, such as petrol and liquor — with a four-rate system.

The current restructured tax regime simplifies this further by introducing just two principal rates: Five per cent and 18 per cent. Ultra-luxury items will attract a 40 per cent levy, while tobacco and related products will remain under the 28 per cent pl

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