India launched the GST 2.0 reform in September 2025. Its central change is the move from the earlier four-slab GST structure of 5%, 12%, 18% and 28% to a simpler two-slab structure of 5% and 18%. A larger number of slabs had created classification, compliance and dispute-related burdens for businesses. The new structure is therefore important as an indirect tax reform aimed at simplifying the tax process and reducing the compliance burden.

The reform lowered rates on cement, auto parts and large household appliances. For exam preparation, these sectors matter because cement is linked with construction, real estate and infrastructure, while auto parts connect with the automotive industry and large appliances connect with durable consumer-goods demand. Lower rates are expected to reduce the tax burden on consumers and businesses.

GST 2.0 links indirect tax reform, the single national market and ease of doing business, because a simpler rate structure can reduce classification disputes and compliance costs. The available estimate says that the reform may add 0.1 percentage point to GDP growth. For static GK, the constitutional base of GST is also useful: Article 246A gives Parliament and State Legislatures concurrent power to make laws on goods and services tax, and the GST Council is the key constitutional body for decisions on rates, exemptions and policy. For RAS and UPSC-style exams, prelims questions can focus on the rate structure, constitutional basis and benefited sectors, while mains questions can ask about tax reform, compliance burden and the single national market.