Mr. Jately has cited recent revenue trend suggest compensation payable to the states has reduced substantially from last year.
28% GST slab had 2000 items initially which has come down to just 28 items which includes cement (hardly a luxury product) and auto components. GST rates on disabled person's carriage parts ans accessories has come down from 28% to 5%.
The original rates were neither thought-through nor reviewed prudently.
Due to the GST revenue on cement ( 13000 crore rs.) and auto parts ( 20000 crore rs.), the council has resisted rate cut on these items for now.
Revenue and optics considerations seem to have a greater role in rate setting than the nature of the goods and services.