GST 1.0 and GST 2.0: A Comparative Study

Goods and Services Tax (GST) was implemented in 2017 and GST 2.0 was implemented in 2025. GST 1.0 was based on four slabs. Such as 5%, 12%, 18% and 28%. GST 2.0 is based on three slabs, such as 5%, 18% and 40%. Many essential goods are exempted from tax under GST 2.0. Individual life and health insurance premium are exempted from tax under GST 2.0. 40% rate is applicable to luxury and sin goods. Small entrepreneurs face difficulties to comply with GST 2.0 due to lack of knowledge about the rules and regulations of GST 2.0. Seminars, workshops should be arranged for both businessmen and tax officials for proper implementation of GST 2.0. GST has simplified the indirect taxation systems which enhanced the ease of doing business. GST 2.0 has reduced tax rates on many essential goods to enhance the purchasing power of consumers. The study is based on primary and secondary data. In this paper, an attempt has been made to compare between GST 1.0 and GST 2.0.