The Group of Ministers (GoM) formed to rationalize GST rates decided to increase the current rate of tax on carbonated beverages, cigarettes, tobacco and related harmful products from 28% to 35%. However, the final decision in this regard has to be taken by the GST Council.
As per the decision of the GoM, now 5% GST will be levied on readymade garments up to Rs 1,500, 18% GST on readymade garments between Rs 1,500 and Rs 10,000 and 28% GST on garments worth more than Rs 10,000. The official said that the Group of Ministers will propose changes in tax rates on a total of 148 items.
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