- Introduction – Rationalization with a
Purpose
India's latest phase of tax reform, popularly called GST
2.0, marks one of the most ambitious recalibrations of indirect
taxation since 2017. Effective 22 September 2025, the Government
revised rates on a wide range of goods and services with the
express objective of lowering prices, curbing inflation, and
enhancing consumer welfare. The reform's underlying economic
logic is straightforward: if tax-induced price reductions are
passed on, consumer purchasing power will increase, demand will
expand, and industry will benefit from higher volumes.
In principle, every participant in the supply chain, including
manufacturers, importers, distributors, retailers, and e-commerce
intermediaries, is expected to align MRPs with the new GST rates so
that the ultimate benefit flows to consumers. Complaints are
mounting, enforcement remains fragmented, and the industry faces
genuine operational hurdles in complying within the
