GST 2.0: 99% of Goods Now Under 0%, 5% or 18% Slabs

Finance Minister Nirmala Sitharaman announced that nearly 99% of goods are now classified under the simplified GST structure, falling within the 0%, 5%, or 18% tax slabs, with only a handful of demerit goods in the 28% category. The restructured system under GST 2.0 aims to rationalize rates, minimize disputes, and provide relief to consumers and businesses by reducing complexity. Sitharaman emphasized that the reform reflects the government’s commitment to balancing revenue needs with ease of compliance. The move is expected to stabilize collections through higher voluntary compliance while reducing the scope for classification disputes. Industry experts welcomed the shift as it improves predictability for pricing and helps businesses plan better, although states remain cautious about possible revenue impacts.