India, Sept. 6 -- India's biggest overhaul of the Goods and Services Tax (GST) since the 2017 rollout has reset the playing field for businesses, from traditional FMCG giants to emerging D2C brands.

At its 56th meeting this week, the GST council, chaired by finance minister Nirmala Sitharaman, cut down the four-tier structure (5%, 12%, 18%, 28%) down to two slabs, while introducing a steep 40% bracket for select luxury and sin goods.

Of the 453 goods that saw revised rates, 413 became cheaper, with essentials taking centre stage, with nearly 295 products earlier taxed at 12% now falling into the 5% or nil bracket. Economists expect the move to spur consumption and ease core inflation.

Soumya Kanti Ghosh, group chief economic advisor at...