GST 2.0: List of Goods to Face the 40% Sin Tax | COMPLETE LIST

India has raised taxes on sin and luxury goods, effective from September 22, 2025. The tax structure will witness a major reform with the introduction of a 40% GST slab. This eliminates the 12% and 28% brackets, leaving only three: 5%, 18%, and 40%.

Why 40% Tax Slab?

The new highest slab is meant mainly for luxury and non-essential products. Items such as high-end cars, premium motorcycles, aerated drinks, and tobacco products fall under this category.

While cigarettes are included in the 40% tax bracket, experts note this doesn't mean prices will automatically rise, as other market factors will also influence final costs.

ALSO READ: GST 2.0: What is Sin Tax? Why is it Imposed and How Will it Impact Goods?

For pan masala, gutka, and chewing tobacco, the revised rate will apply later due to pending technical issues tied to industry loans.

Products Under 40% GST

Here's the list of goods and services that will attract the new tax slab:

Tobacco and Pan Masala (Sin Goods)

• Pan masala
• Gutka www
• Chewing tobacco
• Unmanufactured tobacco and refuse (excluding leaves)
• Cigarettes
• Cigars, cheroots, cigarillos, and substitutes

Aerated and Sugary Beverages

• Carbonated drinks
• Sugary soft drinks
• Caffeinated fizzy beverages

ALSO READ: GST 2.0: What Gets Cheaper, What Gets Costlier | Check Here

Luxury Cars

• Petrol cars above 1200 cc
• Diesel cars above 1500 cc

Premium Motorcycles

• Bikes above 350 cc

Super-Luxury Transport

• Yachts
• Private aircraft and helicopters

Other Sin or Luxury Goods

• Coal, lignite, peat
• Online gambling and gaming services