GST 2.0 Reform in India (2025): Winners, Losers & Economic Impact
GST 2.0 Reform in India (2025): Winners, Losers & Economic Impact Introduction India has rolled out its biggest GST reform since 2017 —a simplified two-tier tax structure aimed at boosting consumption, reducing compliance, and improving market efficiency. Popularly called “GST 2.0” , this overhaul replaces the earlier four slabs with a streamlined system that impacts consumers, businesses, and government revenues alike. What’s New in GST 2.0? The old 5%, 12%, 18%, and 28% slabs are now consolidated into 5% and 18% , with a 40% “sin and luxury” tax for items like tobacco, pan masala, and high-end goods ( Indian Express ). Life and health insurance policies are now exempt from GST, reducing financial burden on households ( Hindustan Times ). Everyday essentials such as soaps, shampoos, cement, electronics, and food products have shifted to lower slabs, making them more affordable ( NDTV ). Luxury apparel (above ₹2,500) , however, now attracts 18% GST, up from 12%....