India’s GST 2.0 marks a watershed overhaul of the indirect tax system, introducing a simplified two-slab structure 5% and 18% effective from September 22, coinciding with Navratri. The move slashes GST on a broad span of essentials: hair oil, soaps, shampoos, toothbrushes, tableware, and kitchenware now attract just 5%, down from 18%. UHT milk, paneer, and Indian breads like roti and paratha are now fully exempted, reducing the rate from 5% to zero. Packaged favorites namkeen, butter, ghee, pasta, cornflakes have shifted into the 5% slab too.

Consumer durables and vehicles also benefit: air conditioners, dishwashers, and TVs (regardless of size) now bear 18% GST instead of 28%. Small cars, motorcycles under 350 cc, three-wheelers, and construction-critical cement have similarly dropped to 18%. Conversely, luxury and “sin” goods from gutkha and sugary carbonated drinks to premium vehicles are now taxed at a steep 40%, consolidating higher-end levies.

This expansive reform dubbed GST 2.0 aligns with broader economic goals of stimulating consumption, simplifying compliance, and easing inflationary pressures across households and industries in the festive season.