New Delhi, Aug. 15 -- Most of the "common man items" are proposed to be moved to the lower GST slab rate of 5 per cent under the GST rationalisation initiative, government sources said on Friday, noting that the Centre will closely engage with states to build a broad-based consensus in the coming weeks.

The sources said that food items and daily use items will fall in the 5 per cent GST slab.

They said if implemented, this proposal will give a big boost to consumption and will have a positive impact on GDP.

They also said the government doesn't require legislative changes to implement this proposal.

The proposal comes after Prime Minister Narendra Modi's announcement today during his Independence Day speech that he will make "this Diw...