Hyderabad, Aug. 28 -- A study by the Centre for Economic and Social Studies (CESS) predicted that the proposed GST 2.0 could reduce the effective tax burden on households in Telangana.

However, it could limit the impact of rising prices rather than putting large amounts of extra money into consumers' hands.

The study estimates that Telangana households could see their effective GST burden fall from 5.4-10.4 per cent in 2023-24 to 3.9-7.1 per cent under GST 2.0.

Food could get the biggest GST relief

Food is expected to see the largest benefit from the proposed changes. CESS estimates that the effective GST rate on food in Telangana could decline from 2.2-7.4 per cent to 0.9-3.4 per cent.

Processed food could see a particularly sharp r...