India’s GST 2.0 reform marks a decisive shift in the government’s growth playbook — from infrastructure-led acceleration to demand-driven expansion. More than a tax tweak, this is a structural reform aimed at simplifying compliance, cutting costs, and stoking consumer spending. Analysts have turned bullish on the consumption space, including auto, consumer discretionary, and BFSI.

The overhaul of the indirect tax regime collapses the earlier four-slab system of 5%, 12%, 18%, and 28% into just two: 5% and 18%. A demerit rate of 40% will apply only to luxury and sin goods. This simplification signals the government’s intent to promote affordability, efficiency, and mass consumption. It aligns India with global practice — nearly three-quarters of countries with GST or VAT have single or dual

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