GST 2.0 - A New Tax Dawn, a Goan Sunrise

On 22 September 2025, Goa woke up to more than just another Monday. In Fontainhas, the church bells rang as shopkeepers quietly reprinted price tags. In Margao, families wondered if their groceries would finally cost less. Shack owners in Baga asked if refrigerators and stoves would become affordable before the season began.

- Gauri Ghadge

Gone were the confusing four slabs of 5%, 12%, 18%, and 28%. In their place: 5% for essentials and merit goods 18% as the standard rate 40% for de-merit or sin goods (tobacco, pan masala, select luxury items)

For India, GST 2.0 promises simplicity, transparency, and relief. For Goa, where tourism, hospitality, small traders, and fisheries drive the economy, it carries special weight. Beyond percentages on a chart, it is about whether a shack owner in Baga can buy a fridge, whether a Margao family's grocery bill falls, and whether state revenue can sustain ambitious growth.

To put it in very simple words, the question now wasn't what is GST 2.0? But rather, what does it mean for every Goan family, business, and tourist?

GST 2.0 EXPLAINED: WHAT HAS CHANGED AND WHY

When GST debuted in 2017, it was hailed as "India's biggest tax reform since Independence." The promise of One Nation, One Tax was meant to replace a patchwork of levies with a unified system. Instead, multiple slabs, exemptions, and compliance hurdles created complexity.

Traders struggled to classify goods, consumers faced unpredictable prices, and small businesses groaned under frequent notices and disputes. Economists warned that complexity distorted consumption and undermined compliance. By 2024, the GST Council began shaping what became GST 2.0: a leaner, cleaner, future-proof model.

The New Structure

Approved by the 56th GST Council (3 Sep 2025) and notified by CBIC on 17 Sep 2025; most changes took effect 22 Sep 2025. GST now works on three slabs:

• 5% (Merit): essentials like soaps, toothpaste, bread, bicycles, basic foods, farm equipment

• 18% (Standard): most goods and services; consumer durables, dining out, electronics, professional services

• 40% (De-merit): tobacco, pan masala, and sin goods