The Indian government is preparing to launch GST 2.0, a new version of the Goods and Services Tax with simplified tax slabs.
Currently, GST has multiple rates (0%, 5%, 12%, 18%, 28%) which create confusion and compliance challenges. Under GST 2.0, the government is considering reducing the slabs to a simpler structure – possibly just three slabs.
👉 Why this matters:
- A simpler GST system means easier compliance for businesses.
- It will encourage small traders and businesses to register under GST.
- Consumers may benefit as many essential goods and daily-use products could become cheaper.
- However, luxury goods and sin goods (tobacco, alcohol, gambling, aerated drinks, etc.) may attract higher tax rates.
👉 Impact on economy:
- FMCG & retail companies (HUL, ITC, Dabur, Titan, Avenue Supermarts) may benefit from lower taxes on essentials.
- Luxury & sin goods companies may face higher taxation.
Overall, GST 2.0 could boost consumption, improve compliance, and increase government revenue stability.
