NEW DELHI: The GST Council, which will meet shortly, is expected to comprehensively review the eight-year-old regime focused on reducing tax on several consumer-focused items in the 12% bracket as well as lowering the burden on items such as air conditioners, which are in the top bracket.Besides, with the compensation cess - money released to states to offset any revenue loss because of switch to GST - due to end in March, a plan on imposing a cess on some of the sin goods, such as tobacco, is also expected to be finalised to ensure that states don't have to bear a significant revenue hit.

Concern that they will be losing out on revenue has been among the principal factors why states oppose tax cuts, including those which they consider to be desirable.The Centre is keen on a liberal view on pure term insurance plans, which currently attract 18% GST and put it in the nil bracket, although the life insurance companies have lobbied for 12%. Proposal to do away with 12% GST rate slab on table Any reduction in GST on insurance will mean big relief, with the Centre keen to protect the interests of middle-class buyers.A call on health insurance too, is yet to be taken, although relief is in the offing.A proposal to do away with the 12% slab is on the table although other options are also being explored while keeping track of the revenue consideration, sources told TOI.

Some of the items in the bracket which are used by businesses may see some increase, the sources indicated.A final decision on the overhaul is expected before the start of the monsoon session and the Centre is not averse to some "revenue loss" with a section arguing that a pure mathematical exercise does not fully capture the revenue realisation. Increased consumption of some of the items with lower taxes may actually benefit, offsetting some of the expected revenue loss.This may also require some political maneuvering and working out a consensus, which will be taken up once the broad arrangement is worked out.While discussions have been going on for over a year now, a consensus has so far been elusive with the group of ministers on GST rationalisation and changes in insurance not throwing up solutions - suggesting tweaks instead of broad-based changes as is the intent. Sources suggested that the idea is to put in place a framework that does not require frequent tweaks and provides certainty to businesses and consumers.