GST on Sin Goods, Cars May Rise as Council Mulls Rate Rationalisation Ahead of Cess Expiry With the compensation cess set to expire by March 2026, the GST Council is considering raising the 28% GST rate on sin and luxury goods like tobacco, aerated drinks, and cars—possibly up to 40%. Discussions also involve merging slabs by removing the 12% rate and reallocating items to 5% or 18%. New cesses such as health or clean energy are also under review to balance revenue loss post-cess phase-out. #gst #gstn #cbic #compensationcess #gstcouncil