New Delhi, Aug. 15 -- In a path-breaking initiative relating to the Goods and Services Tax structure, the Central Government has proposed to scrap the current slab of 12 per cent and 28 per cent of GST rates and keep only 5 per cent and 18 per cent GST rates, government sources said on Friday.

Government sources said as part of the initiative, 99 per cent of 12 per cent slab are proposed to move in 5 per cent slab and 90 per cent of items in 28 per cent slab are proposed to move in the 18 per cent slab.

They said that consumer goods kept in the 28 per cent slab are proposed to be moved to the 18 per cent slab. They also said that a new slab of 40 per cent is proposed for "sin goods" like tobbacco and pan masala.

The initiative is in li...