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For example, products in luxury or indulgence categories, and non-essential goods with higherhealthor environmental burden like alcohol, processed foods and gaming, may face pressure for being included into the new slab.

earn commissions through online platform distribution products commission ✌️【365vc.net】✌️Small investments, big profits. Join today and grow your wealth quickly and safely!This could trigger future demands for reclassification or highertaxslabs for other goods, potentially expanding the complexity of the GST system.While the finance minister and the Central Board of Indirect Taxes and Customs (CBIC) called these reports as “premature and speculative,” the development has sparked debate about the consistency ofIndia’s tax regime.

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Monthly GST revenues doubled between 2017-18 and 2023-24, reaching Rs 1.68 lakh crore, with an all-time high of Rs 2.10 lakh crore in April 2024.

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Given the current strength of GST collections, introducing a new 35% slab risks undoing these gains.The proposed fifth tax slab at 35% targets demerit goods, but it introduces unnecessary complexity into an already functioning GST structure.

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earn commissions through online platform distribution products commission ✌️【365vc.net】✌️Small investment, big returns! Start at ₹500 and grow your wealth month by month.Businesses, particularly SMEs, could face increased compliance costs as they struggle to navigate these new distinctions.

earn commissions through online platform distribution products commission ✌️【365vc.net】✌️Invest small, earn big! ₹500 to start, with potential 100% returns in just one month.This complexity risks triggering classification disputes and slowing down the ease of doing business, particularly for those already burdened with the intricacies of multiple tax filings.A highertax ratecould inadvertently encourage tax evasion or the growth of the black market, especially in India’s tobacco sector, which is now the world’s 4th largest illicit market because of high tax arbitrage.

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