India GST 2.0: Rate Simplification Fuels SME Liquidity Crisis - Whalesbook

GST 2.0's Trade-Off: Simple Rates, Complex Problems The Goods and Services Tax (GST) 2.0 reforms, effective September 22, 2025, overhauled India's tax system. They eliminated the 12% and 28% tax slabs, moving most items to a simpler 5% or 18% rate, with luxury goods at 40%. The goal was to boost spending and ease compliance, supporting India's economic growth target of 6.5-7.6% for FY26. Manufactu…