21 Sep 2025 | 5 Mins Read

Simplifying GST may decrease investment volatility

Flipitmoney

The Govt of India implemented GST 2.0, a simplified two-rate structure of 5% and 18% alongside a 40% slab for luxury and sin goods, replacing the earlier four-rate system. This reform aims to boost demand, reduce prices, and ease inflation, potentially lifting GDP growth by 0.5% and driving earnings recovery in directly beneficiary sectors, including consumption, cement, insurance, and healthcare.