A panel of ministers from different states on Thursday in principle approved the Centre’s proposed sweeping GST reforms through rate cuts, but some opposition-ruled states wanted to know the revenue loss from the move and how that would be bridged. The Group of Ministers (GoMs), headed by Bihar Deputy Chief Minister Samrat Choudhary, discussed the Centre’s proposal of reducing the number of slabs under the Goods and Services Tax (GST) to 2 (5 and 18 per cent) from 4 (5, 12, 18, and 28 per cent). The Centre has also proposed a 40 per cent rate for five to seven select goods.

Recommendations of the six-member panel, which has three members from BJP-ruled states of Bihar, Uttar Pradesh and Rajasthan, and an equal number from opposition-ruled states of Karnataka (Congress), Kerala (Left Front) and West Bengal (TMC), will go to the high-powered GST Council, which will take the final call on the reforms.

“The GoM has decided to accept the two proposals of the Centre,” Bihar Dy CM Choudhary said. “The proposal of the Centre to remove the 12 and 28 per cent slabs was accepted, and we have given recommendations,” he added. Uttar Pradesh Finance Minister Suresh Kumar Khanna said all states welcomed the Centre’s proposal, saying it is in the interest of the common man. Ultra-luxury goods, including ultra-luxury cars, and sin goods will fall in the 40 per cent tax bracket.