• N. JAYAMMA
• Dr. RAVINARAYANA K. S.

The introduction of Goods and Services Tax (GST) marked a transformative shift in India’s indirect taxation system in 2017. However, the evolution of GST into its advanced version, GST 2.0, introduced in 2025, has further redefined economic dynamics across sectors. This study examines the impact of GST 2.0 on rural and urban livelihoods and employment patterns in India. GST 2.0 simplifies the tax structure by reducing multiple slabs into fewer categories and enhancing digital compliance mechanisms, thereby promoting transparency and efficiency. The paper explores how these reforms influence consumption patterns, employment generation, and the formalization of the economy. In rural areas, reduced tax rates on essential goods and agricultural inputs have improved affordability and demand, indirectly supporting livelihoods. In contrast, urban sectors have witnessed shifts in employment trends due to increased compliance requirements and business restructuring. The study also highlights the challenges faced by small-scale industries and informal workers during the transition phase. While GST 2.0 aims to boost economic growth and simplify taxation, its uneven impact across rural and urban sectors raises critical concerns. The paper concludes that GST 2.0 has the potential to create inclusive growth, but its success depends on effective implementation, awareness, and policy support for vulnerable groups.

GST 2.0, Rural Economy, Urban Employment, Livelihood, Tax Reform, Informal Sector

"GST 2.0 in Action: Reshaping Employment and Livelihood Across Rural and Urban India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.13, Issue 10, page no.a158-a160, October-2026, Available :http://www.jetir.org/papers/JETIR2610017.pdf

"GST 2.0 in Action: Reshaping Employment and Livelihood Across Rural and Urban India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.13, Issue 10, page no. ppa158-a160, October-2026, Available at : http://www.jetir.org/papers/JETIR2610017.pdf