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For example, products in luxury or indulgence categories, and non-essential goods with higherhealthor environmental burden like alcohol, processed foods and gaming, may face pressure for being included into the new slab.

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Monthly GST revenues doubled between 2017-18 and 2023-24, reaching Rs 1.68 lakh crore, with an all-time high of Rs 2.10 lakh crore in April 2024.

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Given the current strength of GST collections, introducing a new 35% slab risks undoing these gains.The proposed fifth tax slab at 35% targets demerit goods, but it introduces unnecessary complexity into an already functioning GST structure.

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