oppn parties GST 2.0: Simplified At Last

Story Of The Day

Tiranga Rally Is Excellent. Breaking The Law Was Not

October 18, 2026

People Are Talking About

People Are Talking About Junk Food Near Schools

News Snippets

  • Allahabad HC said that the UP Police is acting as law unto themselves as they detained a person unlawfully even before his arrest
  • Kolkata witnesses traffic snarls on the first day of the Durga Puja festival as revellers start pnadal-hopping
  • Neha Bora was subsequently released and Dipke is to appear before a magistrate today at noon
  • Delhi Police detained Cockroach Janta Party founder Abhijeet Dipke, Neha Bora of AISA, student leaders and supporters ahead of a rally in Connaught Place demanding Chief Election Commissioner Gyanesh Kumar's resignation. The protest followed the detention and jailing of two CJP leaders earlier in the week over demonstrations at Jantar Mantar
  • The Reserve Bank of India is considering further monetary tightening to counter capital outflows and increase the cost of betting against the rupee, according to bankers and analysts cited by Reuters. The measures follow recent rate increases and steps to drain liquidity as pressure on the currency and inflation concerns persist
  • India directed oil marketing companies to stop diverting sugar-based feedstocks for ethanol production in the 2026–27 supply year, according to a new tender issued on Friday. The companies have invited bids for 11 billion litres of ethanol made from alternatives including corn and broken rice, amid concerns about domestic sugar supplies and prices
  • Finance Minister Nirmala Sitharaman said India's trade imbalance with China was growing sharply and attributed the problem partly to restrictions on Indian goods and services entering the Chinese market. China subsequently said it was ready to work with India to address mutual economic and trade concerns; India's trade deficit with China reached $69 billion in the first half of FY2026–27, up 27% year-on-year
  • Indian equity benchmarks extended their recovery on Friday, with the Sensex rising 413.66 points to close at 74,729.27 and the Nifty 50 gaining 148.80 points to settle at 23,146.15. Information technology shares, including Tech Mahindra, Infosys and TCS, helped lift the indices
  • India defeated Zimbabwe by four wickets in the opening women's T20 International in Raipur, taking a 1–0 lead in the three-match series. Deepti Sharma and Niki Prasad combined in an 82-run stand after India's top order collapsed, helping the hosts chase down Zimbabwe's total of 114 for five
  • Indian wrestler Komal won bronze in the women's 59 kg category at the Under-23 World Wrestling Championships in Las Vegas, defeating Kazakhstan's Viktoriia Khusainova 7–2. Fellow Indian Amruta Pujari advanced to the women's 72 kg final after recording two pinfall victories
  • Indian shuttler Jagsher Singh Khangurra secured a bronze medal at the BWF World Junior Badminton Championships in Cairo
  • The Supreme Court of India upheld the Bombay High Court's decision quashing the 2020 write-off of ₹8,415 crore in additional tier-1 bonds issued by Yes Bank (Yes Bank). The court ruled that the bank's administrator lacked the authority to extinguish the bonds under the final reconstruction scheme, strengthening bondholders' claims
  • The Supreme Court issued notices to the Election Commission of India, Delhi Police and opposition leaders, including Rahul Gandhi and Akhilesh Yadav, in separate petitions concerning electoral-roll revision and protests held in Delhi on October 10–12. The court also directed the preservation of CCTV footage linked to allegations of police excesses
  • The Supreme Court ruled that a person converting from Hinduism to Islam cannot automatically claim backward-class reservation benefits in the new religious community solely on the basis of their previous caste status. The judgment upheld the Madras High Court's decision striking down a 2024 Tamil Nadu government order that permitted such certification for specified communities
  • The Election Commission of India ordered a Special Summary Revision of electoral rolls in 14 states and three Union Territories, using January 1, 2027, as the qualifying date for voter eligibility. The draft rolls are scheduled for publication on November 12, claims and objections will be accepted until December 11, and the final rolls are due on January 4, 2027
Tragedy in Kolkata: Stampede at the Chor Bagan Pujo results in 18 people losing their lives and scores injured /////// The stampede was caused by a sudden downpour which made people in the heavy crowd run for cover
oppn parties
GST 2.0: Simplified At Last

By Sunil Garodia
First publised on 2025-09-05 06:05:47

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Author of Cyber Scams in India, Digital Arrest, The Money Trap and The Human Hack

The GST got a serious trim - and about time. The four-tier grind (5%, 12%, 18%, 28%) is being replaced with a simpler two-slab system: 5% for essentials and mid-level goods, 18% for most others. On top of that, a 40% rate kicks in for luxury or harmful "sin" items. It's bold, it's trimmed, and it's finally easy to follow. All this takes effect September 22, 2025 - just in time for Diwali.

Why It's Not Just Tinkering

Items we use daily - milk, paneer, roti, snacks, medicines - get cheaper. Many essentials now fall under the 5% slab or are tax-free. Healthcare and insurance get relief: life and health insurance are exempt, life-saving drugs are zero-tax, and most other medicines drop to 5%. Everyday goods and appliances like TVs, ACs, cement, agricultural tools, and school supplies lean cheaper under the 5% or 18% brackets. And no more bizarre popcorn-versus-paratha tax dramas. Simpler slabs mean fewer arcane classification debates that cost businesses time and money.

How States Were Brought On Board

This broad reform was not easy to carry out. Heavily dependant on GST revenue, states were wary of losing out. The deal was sealed after the Centre promised to make up the losses through compensation measures and putting in place phased adjustments.  In effect, the reform was a hard-fought consensus.

Revenue Will Be Hit, But Higher Consumption Might Make It Up

The short-term revenue loss is hefty. But the central government is betting on broader consumption gains offsetting the hit over time. Simplification cuts compliance costs, though it doesn't end bureaucracy altogether. Critics say the slabs are simpler, yes, but the paperwork and enforcement still need serious cleanup.

What It Means in Plain Terms

Lower bills at home - groceries, school supplies, medicines - will be noticeably cheaper. Urban and rural families alike feel the benefit, and small businesses get breathing room thanks to simpler compliance. Healthcare and nursing families get real relief: that zero-GST cancer drug isn't just a number; it's sanity for patients. On the flip side, luxury and sin items still bite the wallet hard. Tobacco, pan masala, and high-end luxuries remain firmly in the premium tax net.

The Next Step Is Proper Implementation

The big test now is implementation. Will the price cuts show up on shelves quickly? Will states receive timely compensation? And will businesses truly feel less burdened by classification battles? Markets cheered the announcement, but follow-through will decide whether GST 2.0 delivers growth or just another layer of paperwork. India finally cleaned up its GST. It's not perfect (no tax is), but it's gutsy, timely, and designed to make a difference. The real story starts now - with proper execution.

Other Stories You Make Like

Editorials

Eighteen lives lost at Chor Bagan. Kolkata must mourn first and learn second.

Eighteen lives lost at Chor Bagan. Kolkata must mourn first and learn second.

 Growth Without Jobs Is a Warning

Growth Without Jobs Is a Warning

In Depth

Grounds Of Arrest: The Supreme Court's Rule Must Be Followed By The Police On The Ground

Grounds Of Arrest: The Supreme Court's Rule Must Be Followed By The Police On The Ground

Editor's Pick

For the Goonj to Reverberate, Rahul Gandhi Must Take Regional Parties Along

For the Goonj to Reverberate, Rahul Gandhi Must Take Regional Parties Along
© 2014 India Commentary. All rights reserved.