Goods and Services Tax (GST) was first introduced in India in the year 2017. GST replaced various taxes of Central Government and State Government. GST 2.0 was implemented in the year 2025. Many essential goods are exempted from tax under GST 2.0. GST 2.0 significantly changed the consumption pattern of consumers. Under GST 1.0, basic essential items were exempted from tax; 5% rate was applicable for household goods and packaged foods; 12% rate was applicable for processed foods, computers; 18% rate was applicable for telecom services, banking services; 28% rate was applicable for luxury and consumer durables. Under GST 2.0, daily food staples, basic educational stationeries, are exempted from tax; 5% rate is applicable for common essentials; 18% rate is applicable for electronic goods, small cars; 40% rate is applicable for luxury and sin goods. GST 2.0 emphasize on the development of various sectors such as insurance, renewable energy, food, agriculture, wood, health and education. GST 2.0 restructure indirect tax system to maintain fiscal balance. Many consumers are not aware about GST 2.0. Many businessmen have inadequate knowledge on GST 2.0. In this paper, an attempt has been made to find out the role of GST 2.0 in economic development.