The Group of Ministers (GoM) on GST rate rationalization has proposed increasing the GST rate on luxury items, including high-value watches, as part of its efforts to align tax rates with product value. Currently, watches attract a GST rate of 28%, and the proposal could lead to an even higher rate, making them one of the most heavily taxed luxury items under the GST regime.
The move is aimed at ensuring that premium and luxury goods bear a higher tax burden, reflecting their non-essential nature. This proposal will be taken up for discussion at the GST Council meeting in Jaisalmer on December 21.
If implemented, the revised rates are expected to impact the pricing of luxury watches, potentially influencing consumer demand in this segment. The proposal is part of a broader strategy to rationalize GST rates, making essential items like food and daily-use products more affordable by reducing levies in those categories.
