GST Council for different levies for sin goods, luxury items

The GST Council could consider a proposal at its next meeting to replace the existing compensation cess on sin goods and luxury items such as coal, cigarettes and cars with two different levies, a health cess and a clean energy cess, after March 31, 2026, people in the know said.

- Rajeev Jayaswal

NEW DELHI:

There is a "near consensus" among officials and experts advising the Group of Ministers (GoM) deliberating the fate of the compensation cess after the levy is abolished, they said, requesting anonymity. A majority of advisers want the cess on luxury items like cars to continue for funding clean energy initiatives. Similarly, they want existing levies on sin goods such as tobacco products to continue, in order to support health schemes, the people mentioned above said.