India, Sept. 12 -- By eliminating slabs, and simplifying the tax structure, GST 2.0 has provided a huge boost across segments and sectors. One of the largest beneficiaries is the FMCG sector, largely because these items will not attract a lower five per cent on items of everyday use, such as packaged food, medicines, toothpaste, fruit, milk products, talcum powder and shampoo, as against the earlier 12 per cent or 18 per cent. This bodes well for the sales and profits of FMCG firms.

According to a report by Elara Capital, GST 2.0 delivers a structural boost to consumer staples, with most food and personal care categories taxed at five per cent, setting the stage for volume recovery, and organised sector (market) share gains. The largest ...