<h1>GST overhaul proposes 5% and 18% slabs, 40% levy on select goods, reclassification and tech compliance</h1> The GST Council convened to consider a legislative and administrative overhaul proposing two primary GST slabs (5% and 18%), a special 40% levy on select goods, and widespread reclassification reducing rates for many items. The central proposal, vetted by a ministerial group, pairs rate rationalisation with structural and compliance reforms including tech-driven registration and pre-filled returns. Several opposition-ruled states insist on legally guaranteed revenue compensation for transitional losses and may withhold consent absent such protection; allied state governments support the package. The dispute raises federalism and fiscal-compensation issues central to Council approval and implementation.