GST 2.0-Major Overhaul Announced revenue loss of ₹48,000 crore expected

Indian government has introduced a significant restructure in Goods and Services Tax, dubbed "GST 2.0".

The new structure simplifies tax slabs in just two:

1. 5% for essential goods and

2. 18% for most items.

A steep 40% rate will apply only to luxury and sin goods. However, health and life insurance premiums are now tax-free. These changes are set to take effect on September 22, just ahead of the coming festive season. The government anticipates a revenue loss of ₹48,000 crore but expects a boost in consumption to balance the loss.

This brings a major price drop for the new buyers of vehicles in the market. There's a significant drop from  ₹55000/- till up-to ₹14,5000. Other industries also seeing a major drop in prices.

While the new transformation is brings market changes, it will also result in higher consumption rate.