The long-delayed GST reforms have finally taken effect and will hopefully help in reviving consumption, boosting confidence, and nudging Indians toward a self-reliant economy. Framed by the central government as ‘Bachat Utsav’ – savings fest –, the reduced GST rates could have a transformative impact on the economy because India has never had such low indirect taxes before. However, the success of the GST 2.0 would depend on how quickly the companies pass on the benefits of tax cuts to the consumers. The immediate benefits are massive: middle-class families gain purchasing power, and companies selling consumer goods and vehicles enjoy a demand spike. The success of the GST reforms would depend on how well the States are compensated.