New Delhi, Sept. 4 -- In a big relief for the common man, Finance Minister Nirmala Sitharaman announced "next-gen" reforms in the Goods and Services Tax (GST) on Wednesday. These include historic rate cuts and the move to two rates of 5 per cent and 18 per cent from 22 September.

However, a "special" 40 per cent GST slab has been introduced for "super luxury" and "sin" goods. "Since it has been decided to end the Compensation Cess levy, the Compensation Cess rate is being merged with GST so as to maintain tax incidence on most goods," the Ministry of Finance said.

"On other goods and services, the special rate has been applied as these were already attracting the highest GST rate of 28%," the ministry said.

Sin goods such as pan masala...