<h1>State leaders demand five-year compensation, revenue protection and sin luxury levies if GST slabs cut to 5% and 18%</h1> A state chief minister urged the central government to condition proposed GST rate rationalisation on a robust revenue-protection framework for states, a supplementary levy on sin and luxury goods, and a guaranteed compensation mechanism for at least five years, warning reforms must not undermine state finances. Representatives of several opposition-ruled states told officials they expect 15-20% revenue losses and sought five years' compensation for an estimated Rs 2 lakh crore annual shortfall and an anti-profiteering mechanism. The central proposal would replace four slabs with two (5% and 18%) and a 40% levy on select items.