The GST council is expected to discuss major restructuring to raise the base slab from 5% to 9-10% while doing away with the 12% rate and moving 243 items in this segment to the 18% band. These moves will increase the tax burden on consumers but may generate close to Rs 1 lakh crore in additional revenue.

The reworked rates may only result in an increase in the effective GST rate to around 12.5-12.75%, an estimate suggested, although experts warned that there could be an inflationary impact if the levy was increased significantly.

As of now, the GST has four slabs of 5 percent, 12 per cent, 18 per cent, and 28 percent. The 5 percent slab includes essential commodities such as food items, footwear and basic clothing.

In wake of growing revenue concerns, the Goods and Services Tax (GST) council may consider revamping tax structure and raising the existing 5 percent rate to 6 percent to shore up the shortfall in collections.

As of now, the GST has four slabs of 5 per cent, 12 per cent, 18 per cent and 28 per cent. The 5 per cent slab includes essential commodities such as food items, footwear and basic clothing.

In a bid to tackle dwindling GST collections, the government had formed a committee of officers in October this year to suggest measures to boost collections and make businesses comply voluntarily.