New Delhi, Aug. 29 -- The proposed Goods and Services Tax (GST) restructure will lead to substantial revenue loss for states, leading to reduced welfare and development spending, ministers and representatives from eight states who met in the national capital on Friday to discuss the proposed tax reform decided to inform the GST Council.

As such, the GST rate cuts should be backed by a compensation scheme by the central government, they said.

These states have also decided to urge the GST Council to ensure that businesses should pass on the tax benefit to consumers, instead of profiteering.

Kerala finance minister K.N. Balagopal, who was part of the meeting, told Mint, "The benefit of GST relief must be passed on to the final consumer b...