Following the 56th GST Council meeting on Wednesday, September 3, 2025, people began debating what’s getting cheaper and what’s set to burn a hole in their pockets. The government has rolled out a major reform of India’s Goods and Services Tax (GST) regime.

From September 22, 2025, the new taxation regime, GST 2.0, will come into effect with three slabs — 5%, 18%, and a special 40% for luxury goods and a select other items. This replaces the 2017 multi-slab structure, which was not only complex but also tough to comply with.

The timing cannot be more interesting. For one, the Centre is looking to nudge domestic spending at a time when the Indian economy is grappling with US tariffs on Indian goods. Even so, the new rates kick in just in time for the festive season.

So, what’s new? Taxes have been slashed on household essentials, medicines, small cars and appliances. Optimism is running high among consumers.

Now, while most seem to be making merry, not everyone’s upbeat, especially foodtech startups. This is because the new tax regime mandates delivery services provided through ecommerce operators to be taxed at 18%.

With this, delivery-first startups are in a pickle. While they are set to witness peak demand during the upcoming festive season, the new GST mandate could stifle their margins.

Now, before we break down what GST 2.0 really means for ecommerce players, let’s look at the top stories from our newsroom this week:

India’s VC Exit Puzzle: Discounted exits have become more common as valuations reset — even for profitable companies — as India’s oldest VC firms rush to close their funds. And with new investors lining up for a piece of IPO-bound companies, it’s raining discounts in the secondary market

India’s Chip Chase: With the launch of Vikram, India’s first space-grade chip, there’s a clear shift from design to semiconductor production. But with gaps in infrastructure and the manufacturing ecosystem, India’s semiconductor ambitions need a mightier push in the next few years

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