The GST Council on Wednesday approved a two-tier rate structure of 5% and 18%, which will come into effect from September 22. Bihar Deputy Chief Minister Samrat Choudhary said the decision was consensus-based, with all states on board for the rate rationalisation.

West Bengal Finance Minister Chandrima Bhattacharya said the total revenue loss from the move would be around ₹47,700 crore. Uttar Pradesh Finance Minister Suresh Khanna added that no decision has been taken yet on tax incidence for demerit goods, and the proposal to impose a levy above 40% will be considered later.

The marathon 56th GST Council meeting lasted 10.5 hours, during which the Centre and states thrashed out key tax proposals.

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