GST 2.0 Reforms in India: Strengthening E-Invoicing and Real-Time Compliance in a Digital Tax Ecosystem

The Goods and Services Tax (GST) is one of the most significant tax reforms in India, introduced to create a unified indirect tax system. Although GST has improved transparency and reduced cascading of taxes, several operational and compliance-related challenges still exist. Issues such as delayed return filing, fake invoicing, input tax credit (ITC) mismatches, frequent notices, and complex procedures have affected taxpayers, especially small and medium enterprises (SMEs). To address these challenges, the concept of GST 2.0 has emerged as the next phase of reform, focusing on real-time compliance, advanced e-invoicing, data-driven administration, and seamless digital integration. This research paper aims to study GST 2.0 reforms in a simple and easy-to-understand manner. The paper explains the concept, objectives, key features, and expected benefits of GST 2.0. It also analyzes how GST 2.0 can improve tax administration efficiency, reduce tax evasion, enhance taxpayer experience, and strengthen revenue collection. A descriptive and analytical research method is used based on secondary data such as government reports, GST Council discussions, and academic literature. The study finds that GST 2.0, through real-time invoice matching, automated compliance, and use of technology such as artificial intelligence and data analytics, can significantly reduce disputes and improve trust between taxpayers and the tax administration.