Peak GST rate may be raised to 60% ahead of expiry of compensation cess in April

With the cess ending, the government will no longer be able to rely on a dual structure (GST + cess) to achieve higher tax incidence on demerit goods.  The maximum permissible goods and services tax (GST) rate is likely to be raised to 60 percent, up from the current 40 percent, to account for the revenue loss arising from the expiry of the compensation cess on April 1, 2026, multiple governm…