<h1>Centre proposes GST overhaul: two main rates 5% and 18%, 40% special rate on select sin items, eased compliance</h1> The finance minister presented the Centre's proposed GST overhaul to groups of ministers (GoMs), seeking slab rationalisation to two principal rates of 5% and 18%, a special 40% rate on 5-7 sin items, and eased compliance; existing slabs are 0/5/12/18/28% with cess on top. Separate GoMs will consider the future of the compensation cess after the loan-repayment period and lower taxes on health and life insurance premiums. An SBI estimate projects annual revenue loss of about Rs 85,000 crore (Rs 45,000 crore for the current fiscal if from Oct 1). The GoMs' recommendations will go to the GST Council for approval ahead of a planned rollout by Diwali.