<h1>Panel greenlights GST rationalisation to two slabs of 5% and 18%, proposes 40% ultra-luxury tax; states seek higher levy</h1> A government panel of state ministers accepted the Centre's proposal to rationalize GST into two slabs of 5% and 18%, removing the current 12% and 28% rates. The Centre also proposed a 40% tax on ultra-luxury and sin goods, while some states sought an additional levy above 40% to preserve existing tax incidence on items such as cars and demerit goods. Ministers noted the Centre's proposal did not quantify expected revenue loss to the Centre and states from the revised slab structure and supplementary levies.