GST 2.0 IN INDIA: STRUCTURAL RATIONALISATION AND ECONOMIC IMPACT

Since its inception in 2017, the Goods and Services Tax (GST) in India has undergone significant evolution. In September 2025, India transitioned to “GST 2.0,” marking the most significant reform since 2017 rollout. This paper examines the structural rationalisation that compressed the previous multi-tier slab system (5%, 12%, 18%, 28%) into a simplified primary structure of 5% and 18%, with a 40% demerit rate. Using a descriptive-analytical approach, the study evaluates the impact on consumer price indices, tax compliance, and the resolution of the “Inverted Duty Structure.”