India’s Goods and Services Tax (GST) Council has unveiled a new tax regime, “GST 2.0,” effective 22 September, 2025. This reform will simplify the current four tax slabs into a streamlined two-slab structure of 5% and 18%, with a 40% demerit rate for luxury goods. The move, which includes tax cuts on hundreds of consumer goods, is designed to lower prices, spur demand, and stimulate economic growth amid pressure from steep U.S. tariffs. The Indian stock market reacted positively to the announcement, with key sectors leading gains.