GST Consultation in the Era of GST 2.0: What Businesses Should Be Asking Before It’s Too Late?
In the rapidly changing tax environment in India, businesses are not only dealing with the regular compliance, but facing a significant transformation in Indirect taxation. The era of Goods and Services Tax (GST) entered a new phase, and now is the time to engage the right help. Whether you’re a start‑up, an SME, or a larger enterprise, smart GST consultation can make all the difference. In this blog, we will unravel what the GST 2.0 reform actually entails, the sort of questions that businesses should be asking to their GST advisory services, and last but not least how early preparation can help turn potential challenges into opportunities.
What is GST 2.0?
In simple terms, GST 2.0 is a new GST era or you can say a revamped framework. This framework came into effect on 22 September 2025 and replaced the older slab system with those of new slabs.
Here are the key changes:
- The tax slab structure is rationalised: most items now fall under 5 % (for essentials) or 18 % (for standard goods/services). A higher slab of 40 % has also been introduced for luxury and “sin” goods.
- Many everyday goods like household items, life & health insurance, and some medicines have seen rate drops or exemptions, easing burdens on consumers and businesses alike.
- The objective is to reduce classification disputes, streamline compliance, improve tax credit utilisation, and bolster ease of doing business.
Why seek GST consultation in this era?
With reform comes opportunity but also comes risk. Engaging a professional GST consultation in India to study your business, flag impacts, and guide implementation can help you:
- Avoid surprises in pricing, margins, and tax burdens
- Ensure your procurement, inventory, and contracts are aligned with the new regime
- Mitigate non‑compliance, classification errors, or eligibility mis‑steps
- Translate reform into business advantage, like better input tax credit and smoother refunds
What businesses should be asking when engaging GST advisory services
Here are the essential questions to raise with your GST consultant in India:
Question 1: How does GST 2.0 affect our supply chain and billing practices?
Answers: Ask for a mapping exercise: which of your goods/services move from old slab to new slab? Which contracts require renegotiation? Which billing systems must be updated?
Question 2: What is the impact of GST on business inputs and tax credit flows?
Answers: Since input tax credit may now behave differently under the revised slabs, you’ll want clarity on how that affects your working capital, cost base, and eligibility.
Question 3: Which commodities in our portfolio are impacted by the new 5 %/18 %/40 % slabs?
Answers: Some items previously taxed at 12 % or 28 % may now fall into a lower slab or a higher one this shift can materially affect margins or pricing.
Question 4: Do we need to revisit our customer/supplier contracts, inventory policies, and stock valuation because of GST rate changes?
Answers: Unsold stock purchased under old slabs may need sticker pricing, MRP revision, or special handling.
Question 5: How do we communicate changes to customers/suppliers and manage pricing transparency?
Answers: Even if tax changes favour you, perceptions matter. Transparent communication builds trust and avoids disputes.
Question 6: What is the business impact on pricing, margin, demand and how do we turn this into a strategic advantage?
Answers: The reform offers more than compliance: it gives you a chance to rethink pricing, supply‑chain efficiency, and competitive positioning.
Question 7: What ongoing support will you provide monitoring, compliance check-ins, updates as rules evolve?
Answers: GST 2.0 is not a one-off change; ongoing advisory support ensures you stay aligned while rules evolve.
In summary
GST consultation is not only about complying with the requirement but the need to establish your business to succeed under the new GST 2.0. As a proactive company, posing the correct questions, engaging professional GST advisory services, and setting your activities straight early, you will be in a better place to take advantage of the reform instead of scrambling after it.
At MBG Corporate Services, we work with businesses across India to help them interpret the impact of GST 2.0, review operational readiness, update pricing and contracts, and remain compliant and competitive. If you haven’t engaged a GST consultant in India yet, now is the time.