New Delhi: At the high-stakes  56th GST Council meeting held on Wednesday, consensus was reportedly reached on all key proposals, including a major overhaul of the tax structure, reducing the existing four tax slabs to just two: 5% and 18%, according to NDTV Profit.

The two-day meeting of the apex tax panel, chaired by Union Finance Minister Nirmala Sitharaman, commenced on September 3 and is set to conclude on September 4. The new tax rates will be effective from September 22.

The total revenue loss due to the proposed reduction in tax rates is estimated to be around ₹48,000 crore annually, according to NDTV Profit.

Opposition Ruled States Appeal To Centre

Eight opposition-ruled states including, Himachal Pradesh, Jharkhand, Kerala, Punjab, Tamil Nadu, Telangana, West Bengal and Karnataka, have urged the Centre to provide compensation for potential revenue losses if the proposed rationalisation of the Goods and Services Tax (GST) structure is approved during the ongoing GST Council meeting. The Centre has reportedly said it will consider the demand

Which Items May Get Cheaper?

Toothpaste, shampoo, talcum powder, and soap may move from 18 percent to 5 percent GST.

- Butter, cheese, and ghee may also become cheaper.

- Electronics like fridge, TV, and AC may see lower GST rates.

- Small cars may be moved from 28 percent to 18 percent GST, helping companies like Maruti Suzuki.

- But electric luxury cars from brands like Tesla and BYD may face higher taxes.

A new 40 percent slab may also be created for luxury and sin goods like alcohol, tobacco, and high-end cars.

Who Is Attending the Meeting?

Apart from Finance Minister Sitharaman and Minister of State MP Chaudhary, CMs from Delhi, Haryana, Goa, J&K, and Odisha are attending. Deputy CMs from Arunachal, Bihar, MP, and Telangana, as well as the Governor of Manipur, are also present.