<h1>Centre proposes rationalising GST into two main slabs of 5% and 18% with a 40% special demerit rate</h1> The Centre will present a proposal to a six-member Group of Ministers (GoM) to rationalize GST into two principal slabs of 5% and 18%, plus a 40% special rate for a limited set of demerit items, seeking to abolish the existing 12% and 28% slabs. The GoM will consider the proposal at an upcoming two-day meeting; if endorsed it will be forwarded to the GST Council, which comprises the Union and state finance ministers, for formal adoption. The 40% top rate aligns with the maximum allowable rate under the GST statute.