The Daily Brief And here comes GST 2.0
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Sep 5, 2025 Discover the ins and outs of GST 2.0, designed to streamline India's tax system and promote consumer spending just in time for the festive season. Delve into how these changes impact middle-class households and small businesses across the nation. Plus, explore a comparative look at India's railway management versus China's, highlighting the need for modernization. It's a thought-provoking discussion on economic reforms and their implications.
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GST Simplified Into Two Main Rates
- GST 2.0 collapses multiple slabs into two main rates of 5% and 18%, plus a 40% luxury rate.
- This simplifies classification and reduces compliance burdens for many everyday items.
Stimulate Demand By Helping Middle Incomes
- Target lower- and middle-income households with tax cuts to boost immediate consumption.
- Expect higher spending from those most likely to convert relief into purchases.
GST Timing Aims For Festive Bounce
- Rate cuts aim to revive festive-season purchases amid a long-running consumption slowdown.
- Economists warn one reform alone may not reverse weak demand driven by wages and unemployment.
