<h1>State minister urges GST compensation mechanism to guard revenues as two-rate reform benefits consumers but cuts state receipts</h1> A state finance minister urged that GST rate rationalisation benefits be passed to consumers but warned that without a compensation mechanism for annual revenue loss states will be unable to meet social obligations. The GST Council approved a two-rate structure (5% and 18%) effective Sept 22, replacing four slabs, which reduces prices but is projected to cause significant revenue shortfalls-one state estimates Rs 8,000-10,000 crore annually, with goods-related loss about Rs 6,300 crore. The minister argued national-level revenue neutrality ignores state-specific consumption patterns and called for compensation or higher taxation of luxury goods to protect state finances.