Kathmandu, Sept. 26 -- India's latest revision to its goods and services tax (GST), widely described as GST 2.0, came into effect on Monday and is already being viewed as a double-edged sword for Nepal.

While Nepali consumers stand to benefit from cheaper imports of food, consumer electronic goods, and automobiles, domestic industries warn that the new tax structure could hurt local production and employment.

The Indian government first introduced GST in 2017 to eliminate the cascading effect of multiple taxes and create a common national market.

With the latest revision, most goods and services are taxed at either 5 percent or 18 percent, while ultra-luxury items attract a 40 percent levy.

Under the new reforms, daily essentials, foo...