Question
As part of the GST 2.0 reforms effective September 2025,
which of the following items is likely taxed under the new 40% demerit rate, alongside luxury cars and tobacco products?Solution
The GST 2.0 framework introduced streamlined slabs (5%, 18%) and a high 40% demerit rate for "sin and luxury goods," significantly impacting items like tobacco, luxury cars, and certain premium food products, while aiming for lower rates on essentials and electronics. Therefore, premium chocolates, often considered luxury/indulgence items, fall under the 40% demerit slab, unlike basic electronics (18%), essential meds (likely 5%), standard AC restaurant meals (12%), or school supplies (exempt/low).
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