One of India's largest tax amendments since the Goods and Services Tax (GST) was introduced in 2017 is the introduction of GST 2.0 in September 2025. The new framework addressed common issues, including reversed duty structures, improved digital acceptance, and a simplified rate structure. The results indicate that although the reform necessitates short-term fiscal adjustments, it has a significant potential to improve long-term economic growth, efficiency, and transparency. The study examines the potential benefits of formally including MSMEs in the tax system under GST 2.0, including improved competitiveness, better access to financing, and increased transparency. Additionally, it examines how MSMEs manage the costs of compliance, digitalisation, and regulatory awareness. Drawing from a variety of qualitative observations, using quantitative inputs, the study aims to evaluate the combined effects of MSME expansion, including GST reforms, on employment creation, economic growth, and sustainable development. To promote sustainable and fair economic development, the study concluded with policy recommendations to improve MSME support systems and to maximise the implementation of GST 2.0.