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GST Council meet today; fitment panel rejects rate cut demand for 200 items

Caffeinated drinks are among a handful of items for which a hike in the GST rate has been recommended

The panel has turned down a rate cut for hybrid vehicles, saying that they have a tax advantage of 5% over a normal large segment internal-combustion engine vehicle
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The panel has turned down a rate cut for hybrid vehicles, saying that they have a tax advantage of 5% over a normal large segment internal-combustion engine vehicle

Dilasha Seth Panaji

Goods and services tax on caffeinated drinks will go up substantially, if the Council accepts the fitment panel’s recommendation of a steep increase in the tax rate to 40 per cent (28 per cent GST and 12 per cent cess), from the current 18 per cent, in its meeting on Friday here.
 
Caffeinated drinks are among a handful of items for which a hike in the GST rate has been recommended. In fact, rate cut demands for about 200 items — such as automobiles, biscuits, rusks, TVs  (screen size more than 32 inches), footwear, mineral water, breakfast cereal, helmets,