The next generation Goods and Services Tax reforms, known as GST 2.0, have completed one year today, marking another important stage in India’s indirect tax reform process.

The new framework has significantly simplified the GST rate structure. The earlier four slab system of 5 percent, 12 percent, 18 percent and 28 percent has been streamlined primarily into two rates of 5 percent and 18 percent.

During the past year, efforts have focused on making taxation simpler, strengthening compliance and expanding the use of digital systems. GST 2.0 has introduced easier processes for registration and return filing, while also helping accelerate refunds and reduce compliance related costs.

These changes have made tax procedures more convenient for businesses, particularly micro, small and medium enterprises and startups. The reforms go beyond changes in tax rates by aiming to reduce costs, improve affordability and encourage greater compliance.

The simplified framework is also intended to support economic activity and contribute to India’s broader growth momentum by making the indirect tax system easier for businesses and taxpayers to navigate.