Former Commerce Secretary Ajay Dua believes India’s next big GST overhaul—possibly dubbed GST 3.0—should focus on just one simple tax rate. Speaking to in New Delhi on Friday, Dua pointed out that most developed countries stick to a single GST rate, avoiding the complexity of multiple slabs that can hit 40% on some goods.
“I think the central government and states, who decide this together, will eventually agree on one rate,” Dua added. He sees this as the natural next step to streamline India’s tax system even further.
Dua highlighted how the recent GST 2.0 reforms, rolled out on September 22, timed perfectly with the start of India’s festive season. This included major celebrations like Durga Puja and Dussehra, with the shopping frenzy stretching into mid-November and sparking a surge in consumer demand.
These changes have already paid off big time. India saw its highest Navratri sales for consumer goods in more than a decade, thanks to lower GST tax rates that made everyday and luxury items more affordable. Families jumped at the chance to upgrade cars, buy new home appliances, and splurge on lifestyle products, turning festival excitement into record-breaking spending.
By simplifying GST slabs and cutting taxes on essentials and aspirational buys, the government built real confidence among shoppers. Brands and retailers now report sales jumps from 25% to a whopping 100%, giving a major lift to India’s consumption-led economy.
The early festive period—covering Onam, Durga Puja, and Dussehra—drives 40-45% of all holiday sales, making it the country’s peak shopping season and a key engine for economic growth.
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