GST restructuring may lead to 40% ‘sin’ tax on online gaming, luxury cars, cigarettes and more

A major restructure of the tax regime appears to be on the horizon after Prime Minister Narendra Modi hinted at significant changes in his Independence Day address. According to reports, a special 40% tax rate is being considered for goods falling under the “sin and demerit” category. Items likely to be included in this top slab are pan masala, tobacco, cigarettes, luxury cars, and online gaming.