Finance Minister Nirmala Sitharaman said on August 27 that the GST Council next month will discuss rationalisation of tax rates but a final decision on tweaking taxes and slabs will be taken later.

"The upcoming GST Council meeting will take up the issue of rate rationalisation. There will be a discussion on the issue. Committee of officers will make a presentation on rate rationalisation," Sitharaman told reporters in New Delhi.

However, a final decision on rate rationalisation will be taken in a subsequent meeting, she added. Compensation cess on luxury and sin goods are also going to be discussed and can come up in the September 9 meeting or later, she said.

The Group of Ministers (GoM) on rate rationalisation under Bihar Deputy Chief Minister Samrat Chaudhary met last week and broadly converged on retaining slabs under the Goods and Services Tax (GST) unchanged at 5, 12, 18 and 28 percent.

The panel also tasked the fitment committee — a group of tax officers — to analyse the implication of tinkering rates on some items and present them before the GST council.

On August 23, Moneycontrol reported, citing two people familiar with the development, that the GoM on rate rationalisation did not discuss the issue as the matter is being examined by the fitment committee.

"The committee will evaluate the potential revenue loss and other economic impacts before making a recommendation," a second person had said.

The GST Council will also discuss the issue of exemption of health and life insurance from the 18 percent levy at its September 9 meeting. This will be the 54th GST Council meeting.

(With PTI inputs)