A fresh round of goods and services tax (GST) simplifications flagged by entrepreneur Swati Bhargava, co-founder of CashKaro and EarnKaro, is drawing attention for its potential to reduce everyday costs and ease compliance for businesses. In a widely shared post, Bhargava contrasts India’s pre-2017 indirect-tax maze with a “Next Gen GST 2025” framework aimed at simpler rates, quicker refunds and fewer disputes.

The headline shifts she highlights

Essentials

• Before GST (pre-2017): Wheat 2.5%, Rice 2.75%, Flour 3.5%, Tea/Oil/Sugar 6%+, Books 7%
• Now (as described): 0-5%
• Implication noted: cheaper groceries and education

Consumer goods

• Before GST: Soap/Toothpaste 27%, Cosmetics 28%, TVs & Appliances ~31%
• Now (as described): 18%
• Implication noted: more affordable “middle-class” items

Housing & construction

• Before GST: Cement 29%, Sanitaryware 28%
• Now (as described): 18%
• Implication noted: lower input costs can support home-building and real estate activity

Services

• Before GST: Movies 35%, Restaurants 21%, Hotels 19%
• Now (as described): 18%
• Implication noted: leisure, tourism and hospitality within easier reach

MSMEs & businesses

• Before GST: multiple state levies, cascading taxes, slow refunds
• Now (as described): a single national system with faster refunds and fewer disputes
• Implication noted: improved liquidity and operating certainty

Two Ends Of The Economy

If implemented as described in Bhargava’s note, the biggest effects would be felt at two ends of the economy:

• Household budgets, where lower slabs on essentials and common consumer goods support monthly savings; and
• MSMEs, where faster refunds and simpler compliance directly affect cash flow, potentially improving growth and job creation.

The framing also echoes the original “One Nation, One Tax” promise: fewer slabs, fewer interpretive disputes, and a lower compliance burden across states.

A balanced view

Bhargava’s post presents a clean, category-wise snapshot of rate simplification and its intended impact. The lived effect for consumers and companies will ultimately depend on:

• Official notifications and timelines for any changes,
• Pass-through by businesses (how much of input-cost relief is reflected in final prices),
• State-level implementation and compliance,
• Revenue considerations that often shape final rate calibrations.

As outlined by Swati Bhargava, “Next Gen GST 2025” points to essentials staying affordable, aspirational goods getting cheaper, and MSMEs operating with more breathing room, changes that, if borne out in practice, could support consumption and enterprise growth. At the time of writing, this report reflects the claims and comparisons shared in her post; formal government notifications were not reviewed for this article.

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