Page 32 - NIS English 01-15 October, 2025

From GST 1.0 to 2.0…

Answers to All Your Questions

With the concept of ‘one nation-one tax’, GST, implemented on 1 July
2017 as the country’s biggest tax reform, has given a new direction
to the country’s economic development over the past 8 years. From
ending the inspector and permit raj to implementing a uniform
system across the nation, it has proven to be a milestone. There
are several questions that may often arise in your mind regarding
its beginning 8 years ago and the reforms that have followed since.
Here, find answers to every question on your mind...

Isn’t GST just another tax burden Q So why is there talk of Next Gen GST Reforms
Q on us? now?

Absolutely not! GST has GST was implemented 8 years ago. Today, the GST
A implemented a simple tax system by A system has stabilized and has been generating revenue
removing 17 different central and of around 1.8 lakh crores every month since 2024.
state taxes and 13 cesses, which will The stage is set for the next Generation change.
reduce the tax burden.
Q Does this mean GST 1.0 failed?
Absolutely not. GST 1.0 united India’s system. GST
Why another ‘reform’ now? Didn’t A
Q 2.0 builds on that foundation to make it cleaner, easier,
GST fix everything already?
and transparent.
The first step was in 2017. Now in
A GST 2.0, the tax slabs have been
reduced to just two– 5% and 18%. Q Will small traders still face slab confusion?
This has made it even simpler and A Now that confusion has ended due to fewer slabs
more compliance-friendly. in GST 2.0. Clear tax rates will make business easier
and smooth.

immediately paying the compensation and thus gaining compensation, no GST.” After 2014, the new central
the trust of the state governments, ensured that the government, after discussions in the GST Council,
GST process moved seamlessly. agreed to compensate the states for any revenue loss
The second reason was that the states were appre- by guaranteeing a 14% increase in revenue for the first
hensive that they would suffer revenue losses during five years. The states accepted this proposal, and thus,
the implementation of GST. The biggest challenge was the government succeeded in winning their confidence
how the states would be compensated for these losses. for implementing GST. To ensure consensus, a constitu-
Their demand seemed legitimate, and no solution had tional amendment bill was passed to enable the unani-
been found before. Manufacturing-intensive states mous implementation of GST. All GST-related bills were
like Tamil Nadu, Gujarat, Maharashtra, and Karnataka passed unanimously. The relevant rules and regulations
were particularly concerned. They clearly stated, “No were presented to the GST Council and were unani-

30 NEW INDIA SAMACHAR || October 1-15, 2025