<h1>Panel provisionally approves GST overhaul: two main rates (5%, 18%) and 40% special rate; states seek revenue safeguards</h1> A multi-state ministerial panel provisionally approved the central government's GST overhaul to compress slabs to two rates (5% and 18%) with a special 40% rate for select items, while deferring final adoption to the GST Council. Several opposition-ruled states pressed for quantified estimates of revenue loss and a clear compensation mechanism to protect state finances and welfare spending. States proposed either continuation of the compensation cess or allowing higher levies above 40% (via amendment) on ultra-luxury and sin goods to offset losses. A separate GoM backed exempting health and life insurance for individuals, noting a measurable yearly revenue impact and urging mechanisms to ensure benefits reach consumers.