New Delhi, Sept. 4 -- The Goods and Services Tax (GST) Council on September 3 approved the Centre's proposed tax reforms simplifying the current four slab system into a two-tier one (5 per cent and 18 per cent), with a "special rate" of 40 per cent on luxury items and "sin goods".

This special rate, which will become the highest slab, effective from September 22 this year, will be applicable on a list of items that have been deemed as "sin" goods or under the luxury category.

Sin goods are items generally considered harmful to health and society, and as such includes pan masala, beedi, tobacco products such as chewing tobacco and gutka, cigarettes, and carbonated beverages including soft drinks and non-alcoholic drinks.

This highest ta...