14 Sep 2025 | 5 Mins Read
GST 2.0 and its impact on luxury goods and wealth planning
Flipitmoney
India's GST regime has undergone a structural shift. Announced on September 5, 2025, GST 2.0 simplifies the tax structure to three distinct rates: 5% for essentials and government-incentivised categories, 18% as the standard rate, and 40% for luxury and sin goods. The changes also exempt health and life insurance premiums from GST, and introduce preferential treatment for EVs and hybrids.