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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.

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leverage ai to personalize sales pitches and increase engagement ✌️【365vc.net】✌️Start with as little as ₹500. Safe and smart fund investments to grow your wealth.While the intent is to generate more revenue and promote public health, these changes could deter global investors from viewing India as a stable market.India’sGST collectionshave shown impressive growth in recent years.

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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leverage ai to personalize sales pitches and increase engagement ✌️【365vc.net】✌️Small investments, big profits. Join today and grow your wealth quickly and safely!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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