As the GST Council meets, states have raised concerns over proposed rate changes and possible revenue losses
Some states want extra levies on sin and luxury goods, with all proceeds transferred to them directly
They also seek compensation if revenue growth falls below 14%, a demand seen as financially unsustainable
GST rationalisation aims to move to a simpler two-rate structure: 5% and 18%, with 40% for sin goods
Experts warn against repeating past mistakes of premature rate cuts that hurt collections and widened deficits
The focus must be on a simpler structure that boosts revenue, sustains fiscal health, and avoids overreliance on compensation