Tue Dec 03 06:10:49 UTC 2024: ## GST Hike on Cigarettes, Tobacco, and Cold Drinks Likely in New Year

**Jaipur, December 18, 2024** – Consumers may face higher prices for cigarettes, tobacco, and cold drinks in the new year. A Group of Ministers (GoM), tasked with rationalizing Goods and Services Tax (GST) rates, has recommended raising the GST on these items from the current 28% to 35%.

The recommendation will be considered at the 55th GST Council meeting scheduled for December 21st in Jaisalmer, Rajasthan. The council, chaired by Finance Minister Nirmala Sitharaman, will make the final decision on the proposed hike.

The GoM, headed by Bihar’s Deputy Chief Minister Samrat Chaudhary, also proposed changes to GST rates on clothing. It recommends retaining the 5% GST rate for garments priced up to ₹1500, increasing it to 18% for garments priced between ₹1500 and ₹10,000, and implementing a 28% GST on clothing costing more than ₹10,000. The GoM suggested changes to GST rates on a total of 148 items.

An official stated that the proposed GST rate changes are expected to have a positive impact on government revenue. The current four-tier GST slab structure (5%, 12%, 18%, and 28%) will remain, with the addition of the proposed 35% slab. The GST Council will finalize the recommendations at its upcoming meeting. The news follows the release of a model portfolio of 18 PSU stocks by Alara Capital.

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