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Why did the Indian government announce a massive GST reform effective 22 September 2025? In this video, we explain the real reasons behind GST 2.0 and how it will impact you.

The key reason is simplification. For years, India had multiple indirect tax slabs creating confusion, high compliance burden, and cascading taxes. The government wanted a “One Nation, One Tax, One Market” system that is easy for businesses and fair for consumers. (

Another reason is to reduce inflation and boost consumption. Essentials like food, education, and healthcare are now tax-free or at 5%, so that common people get relief.

The reform also aims to encourage investment and manufacturing. By keeping most goods under 18% and luxury/sin goods at 40%, India aligns with global standards and attracts more industries.

In short, the reason behind GST 2.0 is not just taxation—it is about economic growth, consumer relief, and ease of doing business.


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