India Strategy – Event Update – GST 2.0 – Structural Reform to boost demand and economy
Published on 04 Sep 2025
The GOI has announced GST 2.0 which has indicated a reduction in taxes to the tune of Rs480bn and reduction in taxes on wide ranging items of daily use by common man. The measures except tobacco will be applicable from Sept 22 which will help revive festival demand.
There has been steep cut in taxes on Auto, Processed Foods, Personal care, Cement, Ac and durables, Books and Stationery, Hotels (3995mm, cigarettes etc. are placed in 40% bracket. Food delivery services are likely to be taxed at 18% now. We believe that it will boost demand for consumption-oriented companies.
