India’s GST 2.0 reform for 2025 introduces a simplified three-slab structure—5% for essential goods, 18% for standard goods and services, and a new 40% slab for luxury & sin items. The update aims to reduce confusion, make compliance easier, lower costs on daily-use products, and increase revenue from harmful or premium goods. Overall, the revised GST rates bring more transparency, easier classification, and a balanced impact on both consumers and businesses.