GST 2.0 started from 22 Sept. What should SME businesses watch out for?
I run a small B2C & D2C business of sporting goods. With the rollout of GST 2.0 on 22 September 2025, the GST slabs got simplified (mostly 5% and 18%, with 40% for ‘sin’/luxury goods).
I’m trying to understand what compliance, taxation, pricing, costing changes I should plan for. Some specific worries:
Updating invoices, billing-systems, POS machines with new rates
Input Tax Credit (ITC) mismatches because suppliers may not adapt immediately
Cost impact for items moving from 5% → 18% or 18% → 5% for me
Whether I need to re-think pricing or offers so that margin erosion is avoided
Curious to hear from those in manufacturing, SaaS, retail, and wholesale: what are you doing to adjust? What legal or tax advice have you got? What mistakes to avoid?
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Manufacturing of consumer goods is more tricky because many input raw materials had mismatched rates. Under old system, input tax credits were sometimes “inverted duty” — you pay more GST on input than output. With the new slabs, this may shift. I’m consulting a CA to map input vs output rates and ensure I’m not stuck with non-claimable ITC. Also, checking classification (HSN codes) of all inputs; some might be mis-classified and lead to wrong rates.