Hyderabad : Even as GST 2.0 promises tax relief for households, rising education and healthcare costs could erode much of the benefit in Telangana , with prices in both sectors recording steep increases over the past three years, according to the CESS study.
The study, which examined consumer price trends in Telangana between April 2022 and Oct 2025, found that education costs rose by 38%, while healthcare costs increased by 20% during the period. Its Consumer Price Index (CPI) climbed from 173 in May 2022 to 239 in Aug 2025, reflecting rising spending on tuition fees, other educational charges, stationery and books. The health CPI rose from around 192 in April 2022 to over 230 by Oct 2025, driven by higher medical charges, medical devices and other healthcare-related expenses. The study estimates that GST 2.0 could provide some relief in both sectors. GST on education-related spending is projected to decline from a 5-13% range to 3-13%, while GST on non-hospitalisation medical expenditure could fall from 8-9% to 4-5%. Earlier reporting noted: Tax relief ahead, but prices may still pinch under GST 2.0: CESS Hyderabad : While GST 2.0 is projected to lower the tax burden on Telangana households across income groups, its biggest impact may be in cushioning the effects of inflation rather than putting more money back in consumers’ pockets, according to a study by the Centre for Economic and Social Studies (CESS). Earlier reporting noted: The study estimates that the effective GST burden on households in Telangana could decline from 5.4-10.4% in 2023-24 to 3.9-7.1% under GST 2.0. But with food prices having risen by nearly 17%, the tax reduction would mainly soften the impact of inflation rather than completely offset it. Consumers may still end up paying more than they did in 2022, though less than they would have without the proposed tax cuts, according to the authors, including CESS director Professor E Revathi.
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Earlier reporting noted: Food is expected to see the biggest relief.