Overview

• Finance ministers from Himachal Pradesh, Jharkhand, Karnataka, Kerala, Punjab, Tamil Nadu, Telangana and West Bengal met in New Delhi on August 29 and will table a joint plan at the GST Council meeting on September 3–4.
• The bloc pegs the annual shortfall from the Centre’s proposal at roughly Rs 1.5–2 lakh crore, estimating a 15–20% hit to each state’s GST receipts, and seeks protection based on FY2024–25 with 14% assured growth for five years.
• States propose an extra levy on sin and ultra‑luxury goods over the mooted 40% rate with proceeds distributed to states, plus loans backed by future levy collections if gaps persist.
• They are asking for an anti‑profiteering mechanism to ensure that lower GST rates are passed through to consumers instead of boosting corporate margins.
• The Centre’s plan under discussion would compress slabs to 5% and 18% with a high‑rate band near 40% for select goods, with healthcare and many daily‑use items slated for lower rates and the existing compensation cess expected to wind down or be replaced.