While this could lower taxes on many items, officials are considering whether goods primarily used by businesses might need to shift to a higher rate to safeguard revenue.

Officials familiar with the deliberations told TOI that no final decision has been reached.

They indicated that any overhaul must balance the goal of rationalisation with fiscal prudence.

According to TOI, officials argue that a purely arithmetic approach often fails to capture the longer-term gains of higher sales volume that follow tax cuts.

This approach, however, could require extensive discussions and consensus-building among states, some of which are still sceptical about revenue impact.

The group of ministers tasked with rationalisation and insurance-related tweaks has so far recommended incremental adjustments rather than a broad reset.

Sources told TOI that the intention now is to put in place a more predictable tax structure that reduces the need for frequent revisions and provides clarity to both businesses and consumers.

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