New Delhi, Aug. 18 -- Businesses will be spared courtroom drama around product tax rate, as revamping the Goods and Services Tax (GST) into a mainly two-rate structure will prevent quirky disputes like those over parathas and popcorns, a result of the descriptive classification in the existing tax system, government officials said.

The rejig will also benefit the automobile sector. Cars with smaller engines will likely shift from the current 28% slab to 18%, while higher-end models will move to a 40% slab, but still face a lower overall tax burden once the compensation cess, ranging from 17% to 22% on automobiles, is phased out.

The GST Council's group of ministers on tax rate rationalisation, led by Bihar deputy chief minister Samrat C...