India has implemented the new GST 2.0, introducing revised tax slabs aimed at streamlining the taxation system. The new structure consolidates the previous multiple tax brackets into four: 0%, 5%, 18%, and 40%. This overhaul is expected to simplify the tax process and make compliance more straightforward for businesses and consumers alike.

Under the new system, essential items such as food and clothing have been moved to the 5% tax slab, potentially reducing costs for consumers. However, luxury items and "sin goods" like tobacco products, sugary beverages, and high-end automobiles now fall under the 40% tax bracket, leading to increased prices for these products.

Economists and industry experts have expressed mixed reactions to the changes. While some believe the new structure will lead to greater transparency and efficiency, others are concerned about the potential economic impact, particularly on middle-class consumers who may feel the pinch from higher taxes on certain goods.

The government has assured that the reforms are designed to promote fairness and economic growth, with measures in place to monitor and address any adverse effects. As the new GST 2.0 takes effect, both businesses and consumers will need to adapt to the changes, staying informed about the implications for their spending and compliance practices.