GST 2.0 rate cuts on ~400 items lift consumption; collections hit Rs 1.1 lakh cr/month avg

GST rate rationalisation cut the effective tax rate from 14.4% to 12.8%, yet boosted demand across household goods, vehicles, precious metals and cement. Taxable supply rose 22%, vehicles +21%, precious metals volume +60%, and B2C revenue +21.6% — a tailwind for Indian retail category pricing and demand.

— Filed Wed, 1 Jul, 2026, 04:41 IST · Source Times of India · Business · Updated

GST 2.0 rate rationalisation on ~400 items boosted consumption across household goods, vehicles, precious metals and cement, lifting tax collections despite lower rates — directly relevant to Indian retail demand and category pricing.

Why this matters

Extends the GST reform arc from nine years of rate cuts to 5%/18% slabs, showing rationalisation now driving demand and reshaping retail pricing and supply chains rather than just simplifying tax structure.

Retail-company theme accelerating at +454200% QoQ.