India’s GST Council has introduced a new 40% GST slab under GST 2.0 for “sin and luxury goods”, replacing earlier 28% plus compensation cess on these items. Items now under the 40% rate include tobacco (cigarettes, pan masala, gutka), sugary and carbonated drinks, large motor vehicles (petrol cars above 1,200 cc, diesel above 1,500 cc), motorcycles over 350 cc, private yachts and aircraft, among others.The reform simplifies GST slabs to 5%, 18%, plus this new special 40% slab, aiming to discourage harmful consumption while keeping revenue stable.