Controversy Surrounds Proposed 35% GST on 'Sin Goods'

The proposal to introduce a 35% GST on 'sin goods' like aerated drinks and tobacco faces criticism from Swadeshi Jagran Manch, AICPDF, and Indian Sellers Collective. They argue it will lead to increased smuggling, hurt small retailers, and complicate taxation, undermining the GST regime's benefits.

Swadeshi Jagran Manch (SJM) has criticized the proposal to impose a 35% GST on 'sin goods' such as aerated beverages and tobacco products. They argue it could lead to increased smuggling and loss of revenue for the country.

Similarly, organizations like the All India Consumer Products Distributors Federation (AICPDF) and Indian Sellers Collective have expressed concerns. These trade associations argue that the recommendations made by the Group of Ministers (GoM) regarding GST rate rationalization could have negative effects.

The recommendations include a 35% special rate on sin goods, suggested by the GoM, chaired by Bihar Deputy Chief Minister Samrat Chaudhary. Critics warn that such measures would undermine taxation efficiency and harm small retailers, further complicating the existing GST system.

(With inputs from agencies.)