This blog post provides a comprehensive overview of India's GST 2.0, implemented on September 22, 2025. It details the key features, including the reduction of tax slabs to 5% and 18% (with a new 40% for luxury/sin goods), lower taxes on essential goods, durables, and automobiles, and increased prices for luxury items. The article identifies beneficiaries like everyday households, the middle class, farmers, healthcare consumers, and MSMEs. It also addresses potential challenges such as revenue shortfall, price pass-through issues, and transition headaches for businesses. Finally, it outlines expected economic ripples and crucial factors to monitor for the reform's success, concluding that GST 2.0 is a bold step towards simplifying life for millions. An appendix with sample MRP comparisons is also included.

India is set to implement GST 2.0 from September 22, 2025, introducing a new 40% GST rate for "sin" and luxury goods. This reform simplifies the existing tax structure, lowers GST on essentials, and aims to balance public health with revenue generation. The move will benefit households with reduced costs on necessities, while consumers and industries dealing with luxury and harmful products will face higher taxes.GST 2.0: India Introduces New 40% Tax Slab for Luxury & Sin Goods

This post details India's new 1% Tax Collected at Source (TCS) regulation, effective April 22, 2025, under Section 206C(1F). It applies to specific luxury goods (watches, art, yachts, etc.) when the sale value exceeds ₹10 lakh. The article explains the TCS mechanism, lists affected items, clarifies calculation, outlines buyer and seller responsibilities, differentiates it from Section 206C(1H), and highlights that the TCS paid is adjustable against the buyer's income tax liability.

An in-depth examination of the new 18% GST regulation for restaurant services within hotels where room rates surpass 7,500 per day, set to take effect in April 2025. This includes an overview of classification guidelines, effects on consumers, implications for the industry, and the reasoning behind the government's decision.

The Income Tax Department's heightened emphasis on high-value transactions is examined in this blog post. It looks at the motivations behind this decision, how it will affect people and businesses, and risk-reduction tactics.