The panel also relaxed levy of penalty for non-filing of GSTR-1 from July 2017.
The GST Council voted on a matter for the first time during its meeting.
The meeting of all-powerful GST Council is going to be held against the backdrop of lower-than-expected GST collection.
The meeting of all powerful GST Council is expected to take place in the second half of this month to deliberate on a host of issues.
The move is estimated to result in Rs 1.45 lakh crore in revenue loss for the government during 2019-20.
At present, 60 per cent of auto components are taxed at 18 per cent.
The GST Council may consider merging the two brackets 12 per cent and 18 per cent to a single bracket.
The proposed GST tax cuts will have limited impact on government revenue.
Total annual revenue loss could be as much as 500 bn rupees if the panel decided to lower tax rates for auto sector to 18 pc from 28 pc.
Biscuits priced below Rs 100 per kg accounts for 25 per cent of the biscuit market in value terms and 42 per cent in volume terms.