The Goods and Services Tax Council has approved measures to ease burden of compliance on businesses, sources told NDTV Wednesday evening.

Rationalisation of the GST framework - a process that began this morning with Finance Minister Nirmala Sitharaman chairing a GST Council meet - is based on sharp differences in revenue collected under each of the existing four slabs.

High hopes ride on the 56th GST Council meeting as it takes up proposals to simplify slabs and slash rates on key goods and services.

The next generation GST reforms would 'absolutely' set an economy open and transparent with further reduction in compliance burden and benefiting small businesses, Union Finance Minister Nirmala Sitharaman said on Tuesday.

The auto industry is expecting some major changes from the GST Council meeting, which is scheduled to begin on September 3.

The Goods, Services Tax Council, led by Finance Minister Nirmala Sitharaman, begins a two-day meet today eto discuss a shift to a two-slab system expected to slash prices of daily-use items by reducing the brackets under which most goods are taxed.

A tax panel has proposed steep increases in consumer levies on luxury electric cars priced above $46,000, a government document showed, a move that could impact sales of carmakers such as Tesla, Mercedes-Benz, BMW and BYD.

At present, GST on premium economy, business, and first-class tickets is uniformly 12 per cent, applicable across all flights.

Lowering GST for under-350cc will help broaden access, but raising GST for above-350cc would damage a segment vital to India's global edge," Lal said.

Opposition-ruled states on Friday said the Centre's proposal for GST rate reforms could result in a revenue loss of about Rs 1.5 crore to Rs 2 lakh crore and demanded compensation for the losses incurred by them.