GST 2.0: What's changing with India's new tax rules?
India is rolling out GST 2.0 on September 22, simplifying the old four-slab system into two main rates:
5% for essentials (like butter, biscuits, and some medicines), and 18% for most goods and services (such as cement, TVs up to 32-inch, and small cars and motorcycles), with a steep 40% rate reserved for luxury or "sin" items like aerated drinks.
Announced by PM Modi in August and approved by the GST Council, this reform aims to make taxes easier to understand and manage.
Why should you care?
GST 2.0 could mean cheaper essentials and less hassle with paperwork—good news if you're buying everyday stuff or planning big purchases.
Health and life insurance premiums will now have zero GST, making them more affordable.
The government hopes these changes will boost spending, help local manufacturing (hello, Make in India!), and keep the economy ticking even when global trade is shaky.
In short: simpler taxes, possible savings for you, and a push for more jobs down the line.