GST Revamp: Cheaper Groceries, Costlier Luxury Ahead

The Centre has unveiled plans for a sweeping GST 2.0 overhaul, simplifying the tax structure to just two slabs of 5% and 18%, while introducing a steep 40% rate for sin and luxury goods. Everyday household staples like milk, paneer, bread, chapati, and roti may now attract zero tax, while items such as butter, jams, mushrooms, dry fruits, chocolates, and ice creams could see lower rates. The move aims to boost consumption and simplify compliance, but states worry about revenue losses and inverted duty structures. The crucial GST Council meet on September 3-4 will decide the final course.