What is the new GST rate on aerated and sugary drinks under GST 2.0?

Under the GST 2.0 reforms effective September 22, 2025, the new GST rate for aerated waters, caffeinated beverages, carbonated fruit drinks, and other beverages containing added sugar is 40%. This is an increase from the previous 28% rate.

What is the GST on tobacco, cigarettes, and pan masala under GST 2.0?

The GST rate for all tobacco products, including pan masala, cigars, cigarettes, and other manufactured tobacco substitutes, has been increased from 28% to the new luxury slab of 40%.

What is the new GST rate for luxury cars and large vehicles?

Motor cars and other vehicles with an engine capacity exceeding 1200cc (for petrol) or 1500cc (for diesel), or a length exceeding 4000 mm, are now taxed at 40% GST, up from the previous rate of 28%. This applies to both standard and hybrid models in this category.

What is the GST rate for motorcycles with engine capacity over 350cc?

Motorcycles with an engine capacity exceeding 350cc fall under the new 40% luxury GST slab, which is an increase from the previous 28% rate.

What is the GST on personal aircraft and yachts?

Aircraft for personal use, yachts, and other vessels designed for pleasure or sports are now subject to a 40% GST rate, which was previously 28%.

GST Fixed to 40% - Luxury Items and Rates

Under GST 2.0 reforms effective September 22, 2025, luxury items have been fixed at a 40% GST rate, covering high-end vehicles, tobacco products, aerated beverages, and other luxury goods. Explore the full list below.

Luxury Items Fixed to 40% GST

Category	Previous GST Rate	New GST Rate
Other non-alcoholic beverages	18	40
Pan masala	28	40
All goods [including aerated waters], containing added sugar or other sweetening matter or flavoured	28	40
Caffeinated Beverages	28	40
Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice	28	40
Unmanufactured tobacco; tobacco refuse [other than tobacco leaves]	28	40
Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes	28	40
Other manufactured tobacco and manufactured tobacco substitutes; “homogenised” or “reconstituted” tobacco; tobacco extracts and essences	28	40
Products containing tobacco or reconstituted tobacco and intended for inhalation without combustion	28	40
Products containing tobacco or nicotine substitutes and intended for inhalation without combustion	28	40
Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars, other than those mentioned at Sr. Nos.4,5,6,7,8 and 9 of above table [wherein 28% to 18% is mentioned]	28	40
Motor vehicles with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion, of engine capacity exceeding 1200cc or of length exceeding 4000 mm	28	40
Motor vehicles with both compression-ignition internal combustion piston engine [diesel-or semi diesel] and electric motor as motors for propulsion, of engine capacity exceeding 1500cc or of length exceeding 4000 mm	28	40
Motor cycles of engine capacity exceeding 350 cc	28	40
Aircraft for personal use	28	40
Yacht and other vessels for pleasure or sports	28	40