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Committee on Possible Tax Rates under GST for sin tax on aerated drinks
date:Dec 14, 2015
A Committee on Possible Tax Rates under GST, headed by chief economic adviser Dr Arvind Subramanian, has recommended that sin/demerit rate be fixed at about 40 per cent (Centre plus states) and applied to luxury cars, aerated beverages, paan masala, and tobacco and tobacco products (for the states). The recommendations were made in a report the committee recently submitted to Union finance minister Arun Jaitley.

On the Revenue Neutral Rate (RNR), the committee recommended the same in the range

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