According to the sources, the states are aware that it would not be tax prudent to allow GST rate reduction at this stage.
Automobile and component manufacturers have been seeking GST cut on automobiles to 18 per cent from 28 per cent to help the sector come out of a prolonged slump that has resulted in job losses.
The Finance Ministry may explore a clearly-defined broad framework to ensure that cuts in GST rates benefit consumers.
A price hike, if rolled out by developers, is also likely to be restricted to luxury and premium segment units.
As of December 27, 2018, 1.17 crore taxpayers are registered under the GST, which include 60.73 lakh existing (excise, service tax) taxpayers and 56.74 lakh newly registered.