Nine years of GST: rate cuts to 5%/18% slabs reshape retail pricing and supply chains
GST 2.0 (September 2025) rationalises slabs to 5% and 18%, with essential and mass-consumption goods at 5%. Taxpayer base has grown from 66.5 lakh to 1.65 crore and collections from Rs 7.4 lakh crore to Rs 22.27 lakh crore since the July 2017 rollout — lowering tax incidence and driving formalisation across Indian retail.
Nine years of GST reviewed: rate rationalisation to 5%/18% slabs, lower tax incidence on mass-consumption goods, supply-chain optimisation and formalisation — category-level changes materially affecting pricing and operations for Indian retailers.
Why this matters
GST 2.0 marks the most significant slab overhaul in nine years, shifting essentials to 5% and consolidating rates to two tiers — reshaping retail pricing strategy, supply chains and formalisation incentives.
Retail-company signals accelerating at +447200% QoQ.
Also reported by
- Times of India · Business — Same time