GST rates: GST Council to refer GST rates on cigarettes, bidis to rate rationalisation panel

The Goods and Services Tax (GST) Council is set to convene on June 22 to discuss key reforms in the indirect tax system ahead of the Union Budget. \r

Sources suggest the council may refer the issue of GST rates on cigarettes and bidis to the Rate Rationalisation Committee, aiming to reduce the current 28% tax rate to a maximum of 20% under CGST and SGST. Additionally, proposals include reducing GST rates from 18% to 5% on aircraft parts, from 18% to 12% on carton boxes for packaging apples, and from 18% to 5% on solar cookers. \r

Discussions also revolve around exempting the 12% compensation cess on aerated beverages post-March 2026.