Archive · 19 Sep 2025
GST 2.0: New Tax System Aims to Curb Illicit Trade
A new tax system called GST 2.0 is being introduced to make things cheaper for everyone.
This system aims to stop illegal businesses that sell fake or smuggled goods.
By lowering taxes on many products, GST 2.0 hopes to reduce cheating and make the official economy stronger.
While there might be less money for the government at first, it is expected to grow later as more people buy goods legally.
GST 2.0 aims to reduce illicit trade and tax burden.
Illicit FMCG and packaged food markets grew significantly under GST 1.0.
GST 2.0 increases 5% tax items from 54 to 149.
Rural and urban households will see a drop in effective GST incidence.
Government anticipates short-term revenue loss, but long-term gains.
- Who
- FICCI (CASCADE)
- What
- Assessing impact of GST 2.0
- When
- Not specified
- Where
- India
- Why
- To curb illicit trade and boost formal economy
Consumers
Government
Taxation Impact
Consumers
Consumers may spend less, thus boosting consumption.
Government
Short-term revenue dip, but long-term economic gains expected.
- Key Theme
- Impact of GST 2.0
- Report Source
- FICCI (CASCADE)
- GST 2.0 Goal
- Reduce illicit trade
- 5% Slab Increase
- 54 to 149 categories
- Impact of GST 1.0
- Growth in illicit FMCG and tobacco trade
- Expected Outcome
- Short-term revenue dip but long-term gains
Sources
Union minister Meghwal: GST 2.0 to Make Life Easy for Biz, Households
GST Reforms Will Boost E-Economy, Improve Public Welfare: DCM Pawan
GST 2.0 will take India into new growth phase: Pawan
'Start Shopping More, Do Dadagiri At Home': Amit Shah Urges Women To Shop 'Swadeshi' Under GST 2.0