Indian equities: GST 2.0 — A structural tax cut at the right time

On 3 September 2025, India’s Goods and Services Tax (GST) Council approved significant GST simplifications and reductions for a range of categories. This has come at the right juncture given the country faces a potential slowdown from higher-than-expected US tariffs on Indian goods exports. In this investment note, Rana Gupta, Senior Portfolio Manager, Indian Equities, and Koushik Pal, Senior Director, Indian Equities, examine the impact of this “structural rate cut” on the country’s economic trajectory and equity investment opportunities in the background of the US tariff situation and its impact when US-India trade relations were to normalise.