India rolls out GST 2.0—two new rates (5% for essentials, 18% for others), plus a 40% rate on luxury/sin items.
Health and life insurance premiums are now GST-exempt; inverse duty structure is addressed.
Effective September 22, ahead of the important festive season.
Revenue loss estimated at ₹48,000 crore—but expected to be off
set by enhanced consumption.
Markets responded positively initially, though some cooling happened later.
Analysts question whether tax relief alone can sufficiently spur sustained
demand.
Political timing ahead of regional elections adds strategic weight to reform.
Economically, relief could catalyze inflation and boost sectoral margins.
Long-term success depends on rising incomes, not just lower prices.
High on investor radar—policy clarity meets consumption hope.