New Delhi, Sep 3 (PTI) The GST Council on Wednesday approved a two-tier rate structure of 5 and 18 per cent, which will be implemented from September 22.

Bihar Deputy Chief Minister Samrat Choudhary said that all states were on board for the rate rationalisation, and it was a consensus-based decision.

West Bengal Finance Minister Chandrima Bhattacharya said the total loss due to GST rate rationalisation would be Rs 47,700 crore.

Uttar Pradesh Finance Minister Suresh Khanna said no decision has been taken on the tax incidence on demerit goods, and imposing a levy over and above the 40 per cent would be decided later.

The marathon 56th meeting of the GST Council lasted for 10.5 hours, in which the Centre and states thrashed out key tax proposals. PTI JD BAL BAL

GST rate rationalisation introduces a two-tier rate structure and will be implemented as announced with state consensus. The GST Council approved a two-tier GST rate structure comprising lower and higher slabs to be implemented from the announced commencement date. The decision was taken by consensus among states, while finance ministers identified an aggregate revenue shortfall due to rationalisation. Treatment of extra levies on demerit goods beyond the upper slab was left undecided, with further procedural and sectoral classification work to follow.