Budget 2026: Consumer Sector Urges GST 2.0 Reforms to Boost Demand

• Industry stakeholders advocate for 'GST 2.0' in Budget 2026 to simplify compliance, rationalize rates, and strengthen formalization, aiming to revitalize the consumer market.
• Rural consumption continues to outpace urban growth, where mass-market segments face pressure from premiumization and a shift to smaller packs.
• Challenges include rising input costs, inverted duty structures leading to unutilized input tax credits, and high GST on services like advertising and logistics.
• Industry seeks clarity on GST classification, rate recalibration for apparel/footwear, and lower GST on logistics to support quick commerce.
• Expectations include boosting rural and semi-urban demand through infrastructure, agriculture, and employment generation to increase disposable income.

Why It Matters: Consumer sector calls for GST 2.0 reforms in Budget 2026 to simplify taxes and stimulate market demand.