GST 2.0, implemented in September 2025, marks a major phase in India’s indirect taxation system, simplifying the multi-tier structure into a two-slab system of 5%  and 18%, with a 40% demerit rate for luxury and harmful products. The reform aims to streamline compliance, widen the tax base, and align indirect taxation with India’s growth and sustainability goals. It introduces a transparent framework to ease the tax burden on essentials and promote efficiency across the value chain.