GST reforms: THESE products will attract 40% rates – check full list

The decision to cut the rates of the consumption tax was taken unanimously by the GST council that includes ministers from the states, Sitharaman added.

According to the new GST rules, motorcycles exceeding 350 cc and aircraft for personal use will attract 40% GST rate.

Sitharaman said a special GST rate of 40% will be levied on pan masala, tobacco products, cigarettes; and aerated drinks containing added sugar.

The finance minister also said that items in the 18% and 12% slabs had been brought to the 5% slab. 

After the 56th GST Council meeting, Union Finance Minister Nirmala Sitharaman said: “All this will be effective 22 September 2025, the first day of Navratri… The changes on GST of all products except sin goods, will be applicable 22 September…  Sin goods will continue at the existing rates of the GST and compensation cess, where applicable, till the loan and interest payment obligations under the compensation cess account are completely discharged.”

The Union Finance Minister and the Chairperson of the GST Council is authorised to decide on the actual date of the transition for the tobacco related products as soon as the loan and interest is cleared.