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GST 2.0

GST 2.0

GST 2.0 was introduced on September 22, 2025, , a significant overhaul of the Goods and Services Tax system aimed at simplifying the tax structure and enhancing economic efficiency. The new framework
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GST 2.0 FAQs

GST 2.0 is the upgraded version of India’s Goods and Services Tax system, introduced on September 22, 2025. It represents a major reform aimed at simplifying the tax structure, enhancing economic efficiency, and making compliance easier for businesses.
Under GST 2.0, the tax structure has been simplified into two main slabs: 5% for essential goods and services and 18% for most other items. Additionally, a 40% tax applies to luxury and sin goods such as tobacco, alcohol, and online betting.
GST 2.0 benefits consumers by lowering the cost of essential goods and services. Items such as packaged foods, soaps, bicycles, and household appliances now attract lower GST rates, making everyday purchases more affordable. At the same time, luxury and non-essential items are taxed at higher rates, helping balance revenue while promoting equitable consumption.
Several sectors benefit significantly under GST 2.0, including agriculture, automobiles, consumer durables, healthcare, and construction. Reduced tax rates on products like TVs, air conditioners, cement, and other building materials make them more accessible. Healthcare products and life-saving drugs enjoy lower taxes, providing relief to households and supporting broader economic growth.
GST 2.0 helps businesses by reducing the compliance burden and simplifying tax filings. With fewer slabs and clear guidelines, companies can save time and resources while ensuring transparency in transactions. This encourages competitiveness, lowers operational costs, and supports a more efficient business environment, ultimately contributing to the overall growth of India’s economy.