Volume 2 - Issue 2, March - April 2026

The introduction of the Goods and Services Tax (GST) in India in July 2017 represented the most sweeping indirect tax reform in the country's post-independence history. While its first phase consolidated a fragmented tax structure, a number of structural inefficiencies — including the inverted duty structure, cascading effects on certain commodities, and the exclusion of petroleum products — have persisted. The proposed GST 2.0, a term increasingly used to describe the next phase of GST rationalisation, aims to address these concerns through a streamlined rate architecture, broader base, and enhanced digital compliance. This article examines the potential impact of GST 2.0 on household budgets across income categories, with a focus on essential commodities, housing, healthcare, and education. The study argues that while GST 2.0 may reduce the overall tax burden for certain segments, its net impact on household expenditure depends critically on rate rationalisation decisions and the degree to which benefits are passed on by businesses. Drawing on secondary data from the National Sample Survey and Consumer Price Index reports, the paper presents a consumer-centric assessment of GST 2.0 and outlines recommendations for an equitable, pro-poor rate structure.

Dr.B.Lakshmana Rao, Dr.S.Ramesh,"GST 2.0 and the Changing Face of Household Budgets A Study of Consumer Price Dynamics and Fiscal Redistribution in India" International Journal of Advanced Multidisciplinary Research and Educational Development, V2(2): Page(932-934) Mar-Apr 2026. ISSN: 3107-6513. www.ijamred.com. Published by Scientific and Academic Research Publishing.