Latest GST Reforms in India and Their Impact India’s latest GST 2.0 reforms, implemented from September 2025 and further updated in 2026, aim to make the indirect tax system simpler and more efficient. The reforms mainly focus on two standard GST rates of 5% and 18%, while a higher 40% rate applies to luxury and sin goods. They also provide tax relief on health insurance and essential items and promote greater use of technology to make GST compliance more automatic and convenient.