As covered by The Economic Times, Indians woke up to cheaper essentials and consumer goods as GST 2.0 rolled out, arguably the biggest tax reset since 2017. Essentials like milk, medicines, and insurance premiums, alongside cars and durables, are now lighter on the pocket, effectively handing the middle class a ₹2 lakh crore “coupon.” With perfect festive timing, this is not just household relief but also a deliberate demand stimulus. The reform simplifies slabs, reduces compliance headaches for businesses, and, if the cuts are passed on fairly, delivers tangible relief even in rural and semi-urban India where price sensitivity is highest. Lower costs can ease inflationary pressures, boost sentiment, and push discretionary spending that has been subdued in recent quarters. But the story isn’t without fine print. An estimated ₹48,000 crore revenue hit could stretch both Centre and State budgets if higher consumption volumes don’t make up the gap. Add rising fuel and logistics costs, and there’s a real risk that the full benefit doesn’t trickle down to consumers as intended. Ultimately, GST 2.0 is as much a political signal as an economic one: simplifying taxes, energising demand, and positioning consumption as the growth driver. Its success will hinge on transparent pass-through, fiscal discipline, and inflation management. If executed well, this could be the start of India’s most consumer-friendly tax regime yet. #LexEtAl #GST #IndianEconomy #TaxReforms #PublicPolicy #MiddleClassIndia #ConsumptionGrowth #FiscalPolicy #EaseOfDoingBusiness
GST 2.0: India's biggest tax reset since 2017, benefits middle class
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🚀 GST 2.0 Is Here: A New Era for India’s Economy! 🚀 Today, September 22, 2025, marks a historic moment as India implements GST 2.0—the biggest tax overhaul since 2017! 🗓️ Here’s what you need to know: 📉 Simplified Slabs: · 5% for essentials 🥛🍞 · 18% for most goods and services 📱🛒 · 40% for luxury and "sin" items 🚬🍷 💰 What Gets Cheaper? · Daily essentials like soap, toothpaste, and packaged foods · Household appliances (ACs, refrigerators, TVs) · Small cars and two-wheelers · Insurance premiums and healthcare products 💸 What Gets Costlier? · Luxury cars and high-end bikes · Tobacco products and sugary drinks · Online gaming and betting 📈 Economic Impact: · Expected to boost GDP growth by 0.5–1% 📊 · Could reduce inflation by up to 1.1% 📉 · Benefits for MSMEs with easier compliance 🏭 🎯 Why It Matters: This reform isn’t just about taxes—it’s about putting money back into the pockets of consumers, stimulating demand, and strengthening India’s economic foundation. IMCS Group India Satish G Kumar Mustafa K. Naveen Padiyar ABHINAV GARG Rajiv Kumar Anadi Shukla Nipun Baldua Shibu Mathew Bharatsinh Solanki ⓁⒾⓄⓃ Syed Mohd Zakiullah Mayank Singhania Rahul Muralidharan Nair Ravindra Gupta Mehak S. Shriyaa Shukla Syeda Muskan fatima #PMNarendraModi #GovernmentofIndia #GST2 #EconomicReform #TaxSimplification #IndiaEconomy #GSTChanges #ConsumerBenefits #MSMEs #EconomicGrowth #LinkedInNews
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The Great Indian GST Reset Came in 2017, GST was one of those landmark reforms for businesses: their taxes were simplified; the level of compliance was increased; and they felt more confident about their investment. A new chapter for consumers is now being opened with GST 2.0. For households that are fighting to keep the rising expenses at bay, this reform comes just at the perfect time. Lower GST simply means less burden on families and more disposable income for festivities and celebrations, which is going to cascade into the shopping, retail, FMCG, and discretionary sectors and keep the engine of the economy going. Let me simplify it for you: GST 1.0 → Efficiency to businesses. GST 2.0 → Gives the consumer some air to breathe. Well, initial problems like billing adjustments, rate clarifications, and momentary confusion will happen--but then long-term success means a more sturdy demand from consumers, healthier MSMEs, and more jobs in the pipeline. 👇 Bottom line This reset is about more than just tax rates; it is about redesigning the balance between enterprise and everyday life. Till now, India has looked at tax more from a compliance perspective. Shifting this focus to consumption means taking GST to the next level--as a building block for growth and a relief for the consumer. From all of us at CapChase Fintech, Happy Navratri! May this festive season bring energy, growth, and abundance. #FinancialGrowth #ProsperityWithPurpose #WealthAndWisdom #FintechForIndia #CapChaseFintech
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🚨 GST 2.0 is here – What it means for India. Quick unlock... On 22 September 2025, India rolled out one of the biggest tax reforms since GST was first introduced. 🔹 Simpler slabs – 5% & 18% (plus 40% for luxury/sin goods) 🔹 Relief for households – essentials, medicines, education supplies at lower/no GST; life insurance now exempt 🔹 Boost for industry – autos, consumer durables, electronics, textiles see price cuts → stronger demand 🔹 Support for MSMEs – reduced compliance burden & better competitiveness 🔹 Macro impact – analysts expect a 100–120 bps boost to GDP in the next few quarters, along with easing inflation Yes, there are risks (fiscal strain, transition issues), but the direction is clear: more purchasing power, higher consumption, stronger growth. India just took a bold step toward making taxation simpler, fairer, and more growth-oriented. #GST2 #TaxReform #IndiaEconomy #Growth #MSME #ConsumerBenefit #India
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How the GST Rate Cut Could Transform India’s Economy: A Personal Perspective As someone deeply invested in India’s economic landscape, I find the recent GST 2.0 reforms both intriguing and promising. Effective from September 22, 2025, these changes aim to simplify the tax structure and stimulate growth. 📊 Key Highlights: • Simplified Tax Structure: The new system consolidates four tax slabs into two—5% and 18%—with a 40% rate for ‘sin’ goods like tobacco and alcohol . • Consumer Relief: Everyday items such as soaps, toothpaste, and household cleaners now fall under the 5% or nil tax bracket, potentially easing household budgets . • Sectoral Impacts: Significant reductions in GST for sectors like electronics, automobiles, and healthcare are expected to boost demand and affordability . 📈 Potential Economic Impact: • GDP Growth: Experts anticipate that the GST-related demand boost could add 100 to 120 basis points to India’s GDP growth over the next 4–6 quarters, potentially nullifying the negative impact of higher tariffs . • Inflation Control: The reforms are expected to ease Consumer Price Index (CPI) inflation by approximately 25 basis points, contributing to more stable prices . My Perspective: While these reforms present a positive outlook, the real question is: Will the benefits reach the end consumers, or will businesses absorb the cuts? As we move forward, it will be crucial to monitor how these changes affect both the consumer experience and business operations. I’d love to hear your thoughts—how do you think this GST overhaul will impact your industry or daily life? #GST #IndianEconomy #PolicyReforms #BusinessInsights #EconomicGrowth
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GST collections are rising year after year. Is it because of consumption or inflation? Monthly Data of GST collections: → May’25: ₹2.01 lakh crore (+16.4% YoY) → June’25: ₹1.85 lakh crore (+6.2% YoY) → July ’25: ₹1.96 lakh crore (+7.5% YoY) → Aug ’25: ₹1.86 lakh crore (+6.5% YoY) At first, it may seem like inflation is driving the rise. But the numbers suggest otherwise. • July ’25 GST collections: +7.5% YoY • Inflation in July: +1.6% That ~ 6% gap tells the story. Indians are actually buying more, not just paying higher prices. But what’s driving this? • Factories are busy → production is at a 17-year high. • More businesses paying taxes → e-invoicing and AI tracking are catching tax evaders. • Fresh investments → companies are buying more machines and raw materials, showing expansion. Adding to this, the government has just announced new GST rate cuts. This may reduce the tax collected per item in the short term. But lower prices usually mean people buy more → driving healthier, volume-led growth. India’s GST story is less about inflation and more about a maturing economy, where stronger demand, compliance, and investment are driving growth. If these trends continue, GST could remain one of the best signals of India’s consumption cycle in the years ahead. Do you see India’s GST trend as part of a durable consumption cycle, or could it ease in the coming quarters? #GST #IndiaEconomy #Markets #Investing #Consumption #GrowthStory
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India’s New GST: A Game Changer or a Gamble? India's latest GST reforms, effective September 22, 2025, are set to simplify the tax landscape and reshape the economy. The old four-rate system is out, replaced by a streamlined two-rate structure (5% and 18%) and a new 40% luxury tax. This change is poised to ignite consumer spending and create a ripple effect across the equity market. ✅ 5% GST → Essentials, FMCG, Medicines ✅ 18% GST → Consumer durables, Automobiles, Real Estate inputs 🚫 40% GST → Luxury, Alcohol, Tobacco Winners FMCG & Household Goods 🛒 → Cheaper products = higher volumes Automobiles 🚗 → Lower costs may fuel sales Cement & Real Estate 🏗️ → Construction boom incoming Healthcare & Insurance 💊💼 → Lower premiums + affordable meds Losers Luxury Goods 👔👠 → High tax to slow demand Liquor & Tobacco 🍷🚬 → Higher prices = lower consumption Premium Lifestyle Brands 👜⌚ → Squeezed margins & sales A Note of Caution: The Disparity in Income While the tax cuts are a positive step, it's crucial to acknowledge the underlying economic reality. Disposable income in India is not evenly distributed, with a significant portion of the population having limited funds for discretionary spending. If the intended boost to consumer spending doesn't translate into broad-based demand, the anticipated market benefits may fall short of expectations. Investors should be cautious and monitor consumption data closely, particularly from rural and lower-income segments, as the success of these reforms hinges on their spending power. Disclaimer: This is for informational purposes only and not a substitute for professional financial or legal advice. All investment decisions should be made with a qualified financial professional. #GST #Economy #Stockmarket #Finance #Growth #Reform #IncomeDisparity #EquityMarket #Investing
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From grocery bills to green energy, GST 2.0 is rewriting the rules of India’s economy. 🧾 GST 2.0: What the Big Overhaul Means for Growth, Business & You India is rolling out its biggest GST reform since 2017, effective September 22, 2025. 🔑 Key Changes • Simplified GST slabs → 5% for essentials, 18% standard, 40% on luxury/sin goods • Daily essentials cheaper → many items zero-rated or taxed at 5% → relief in grocery bills & household expenses • Sectoral boost → automotive (small cars), appliances, cement, agriculture, green energy benefit from input tax reductions ⸻ 💡 Why It Matters • ✅ Boosts consumer spending & reduces inflation pressures • ✅ Makes business compliance simpler, especially for MSMEs • ✅ Strengthens India’s manufacturing competitiveness & supply chain depth • ⚠️ Luxury goods & states reliant on high GST revenues may feel the pinch #GST2.0 #IndiaEconomy #TaxReform #Business #Consumer #Innovation
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India's Economy Does a "Tap" Dance! 💃🕺 The new GST 2.0 reforms are off to an electrifying start! On Day 1, e-payments saw a phenomenal 10x surge, reaching an incredible ₹11.3 lakh crore! This isn't just a number—it's a clear signal that India is embracing the digital-first approach to commerce, and it's a huge vote of confidence in the new tax regime. So, what's all the buzz about? ✅ Simplified Tax Structure: The old four-slab system has been streamlined to just two main rates: 5% for essentials and 18% for most goods and services. This makes life easier for both consumers and businesses. ✅ Big Savings for You: From your daily groceries and medicines to cars and electronics, prices are dropping! The GST cuts are designed to put more money back into the hands of citizens, boosting household savings and encouraging a spending spree just in time for the festive season. ✅ A Boost for Businesses: With reduced tax burdens and simpler compliance, MSMEs and small businesses are among the biggest winners. The reforms are set to make India's tax system more efficient and transparent, while also spurring domestic manufacturing and economic growth. This "GST Savings Festival" that’s set to be a significant step in reviving the economy. The reforms, which streamline taxes to 5% for essentials and 18% for most other goods and services, are a major catalyst for a consumption-led growth story in India. How are you looking at it? Let us know in the comments! 👇 #GST2 #GSTReforms #India #DigitalPayments #Economy #Taxation #Savings #GoodsAndServicesTax #GSTUpdate #IndiaGrowthStory #Millionsworth
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India's Economy Does a "Tap" Dance! 💃🕺 The new GST 2.0 reforms are off to an electrifying start! On Day 1, e-payments saw a phenomenal 10x surge, reaching an incredible ₹11.3 lakh crore! This isn't just a number—it's a clear signal that India is embracing the digital-first approach to commerce, and it's a huge vote of confidence in the new tax regime. So, what's all the buzz about? ✅ Simplified Tax Structure: The old four-slab system has been streamlined to just two main rates: 5% for essentials and 18% for most goods and services. This makes life easier for both consumers and businesses. ✅ Big Savings for You: From your daily groceries and medicines to cars and electronics, prices are dropping! The GST cuts are designed to put more money back into the hands of citizens, boosting household savings and encouraging a spending spree just in time for the festive season. ✅ A Boost for Businesses: With reduced tax burdens and simpler compliance, MSMEs and small businesses are among the biggest winners. The reforms are set to make India's tax system more efficient and transparent, while also spurring domestic manufacturing and economic growth. This "GST Savings Festival" that’s set to be a significant step in reviving the economy. The reforms, which streamline taxes to 5% for essentials and 18% for most other goods and services, are a major catalyst for a consumption-led growth story in India. How are you looking at it? Let us know in the comments! 👇 #GST2 #GSTReforms #India #DigitalPayments #Economy #Taxation #Savings #GoodsAndServicesTax #GSTUpdate #IndiaGrowthStory #Millionsworth
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GST Cut in India: Why Consumers Will Not Benefit India’s recent GST reduction has raised expectations of cheaper goods and services. But consumers will not see relief—because the real issue isn’t taxes, it’s the lack of genuine competition. In many sectors, a few dominant players control the market. With weak competitive pressure, companies have no incentive to pass on GST cuts. Instead, they absorb the benefits as profit. True capitalism depends on healthy competition, where one player’s price cut forces others to follow. But in India, cartel-like behavior, barriers to entry, and weak enforcement keep prices rigid at the top. This is why GST cuts will not reduce costs for the public. Unless India strengthens competition and enforces pro-consumer practices, the benefits will stay with companies rather than flow to consumers. #GST #IndiaEconomy #Taxation #MarketCompetition #ConsumerRights #BusinessInsights
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