GST 2.0 Release
Innovative Features
Auto-Updated Tax Slabs
MaxxERP automatically applies the new GST 2.0 structure — 5% for essentials, 18% for standard goods, and 40% for luxury and sin items — across every invoice, so you never have to manually update tax rates or worry about applying the old slabs by mistake.
Accurate GSTR Filing
Every sale and purchase is calculated under the correct GST 2.0 slab in real time, keeping your GSTR-1 and GSTR-3B filings accurate and audit-ready without manual reconciliation.
Error-Free E-Invoicing
MaxxERP's billing engine applies the right tax rate automatically at the point of sale, eliminating manual slab selection errors and keeping every invoice compliant from day one of the new structure.
India’s Goods and Services Tax (GST) system has entered a new era with the rollout of GST 2.0, effective from September 22, 2025. The Council has simplified the structure into a 5% slab for essentials, 18% for standard goods, and 40% for luxury/sin items, replacing the earlier complex categories.
FAQs
GST 2.0 is India's most significant GST overhaul since the tax was introduced in 2017. Approved at the 56th GST Council meeting and effective from September 22, 2025, it simplifies the earlier four-tier structure (5%, 12%, 18%, 28%) into a leaner system built around 5% and 18% as the two primary slabs, with a 40% rate for luxury and sin goods. MaxxERP's billing engine has been updated to reflect these slabs automatically, so your invoices stay compliant without manual rate changes.
Both were phased out under GST 2.0. Most items previously taxed at 12% moved to the 5% slab, while most items previously at 28% moved to either 18% or the new 40% slab, depending on the category. A small number of goods — like gold, diamonds, and precious stones — continue at their existing lower rates (3% and 0.25%). MaxxERP automatically applies the correct reclassified rate to each item based on its HSN code, so you don't have to manually track which category every product moved into.
The 40% slab applies to luxury and "sin" goods — items like high-end vehicles, aerated and caffeinated beverages, and select tobacco products (tobacco and pan masala remain under the earlier 28% + cess structure temporarily, until compensation cess loan obligations are cleared). For businesses dealing in these categories, MaxxERP flags and applies the 40% rate correctly at billing, reducing the risk of under- or over-charging GST during the transition.
Yes — system updates are necessary to reflect the new slab structure, revised HSN-to-rate mappings, and updated return filing formats. MaxxERP has already rolled out GST 2.0-compliant updates, so invoices, GSTR-1, and GSTR-3B filings are calculated against the correct rates automatically, without requiring manual reconfiguration on your end.
Businesses can claim transitional Input Tax Credit (ITC) on inventory held as of September 22, 2025, provided it's properly documented through stock-taking. MaxxERP supports this transition by maintaining clear records of stock valuation and tax rates before and after the rate change, making it easier to reconcile transitional ITC claims accurately.
