India, Sept. 4 -- India's indirect tax system is set for a major reset from September 22, when a new 40% GST slab comes into force. This change marks the removal of the 12% and 28% brackets, leaving behind just three - 5%, 18% and the newly introduced 40%. The highest slab has been designed mainly for luxury and non-essential goods such as high-end vehicles, aerated drinks and tobacco products. While cigarettes have been slotted into the 40% bracket, this doesn't automatically mean prices will shoot up - other factors play a role. For pan masala, gutka and chewing tobacco, the higher rate will kick in later due to unresolved technical issues linked to pending industry loans.

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