The GST Council, which began 2-day deliberations today, is likely to shortly finalise a 4-tier tax structure with some tinkering of the Centre's proposal. 

The Centre has proposed 4-tier tax structure of 6, 12, 18 and 26 per cent, the peak rate being for FMCG and consumer durables. 

According to sources, the Council comprising state finance ministers and headed by Union Finance Minister Arun Jaitley may opt for a lower rate of 5 per cent instead of the proposed 6 per cent. The members may agree to raise the higher slab to 28 per cent rate from the proposed 26 per cent. 

They may retain the 12 per cent and 18 per cent rate for certain categories under the Goods and Services Tax regime. The meeting will have to sort out the issues concerning tax rate to enable Parliament to approve the Central GST (CGST) and Integrated GST (IGST) legislations in the Winter Session beginning November 16 and pave the way for rollout of the new indirect tax regime from April 1 next year. 

Sources also said that certain states are in favour of 40 per cent tax rate on tobacco. 

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