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What changes took place in the varna-based society?

Answer
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Hint: Varna is a Sanskrit word with diverse meanings including type, order, colour, or class was used to refer to social classes in Hindu texts like the Manusmriti.

Complete answer:
The system of varna in Dharma-shastras divides society into four varnas (Brahmins, Kshatriyas, Vaishya and Shudras). Communities who belonged to one of the four varnas or classes are called savarna. Those who did not belong to any varna were called avarna. Therefore, the ones belonging to the lowest Varna, for example, the Shudras were disfavoured on the account of their birth and occupation. Moving from one varna to another was very rigid as it was based on birth.

Later on, smaller castes or jatis emerged within varnas. On the other side, many tribes and social groups were taken into caste-based society and given the status of jatis. Specialised artisans such as smiths, carpenters, and masons were also perceived as separate jatis by the Brahmanas. Jatis rather than varna became the basis for arranging society. Amidst the Kshatriyas, new Rajput clans became powerful.
Many tribes became part of this caste structure, But only the supreme tribal families could join the ruling class. A vast majority joined the lower jatis of caste society. Many supreme tribes of Punjab, Sind and the North-West Frontier had adopted Islam. They resumed rejecting the caste-system. Smaller communities, or jatis, emerged within varnas.

Many tribes and social groups were taken into caste-based society and termed as the status of jatis. Specialised artisans - smiths, carpenters and masons - were also recognized as separate jatis by the brahmans. Jatis, rather than varna, became fundamental for organizing society.

Note: The four-fold Varna society was constructed on the idea of Purity of birth i.e. ascribed status and neglected the achieving of social status. The varna system is hierarchical in nature and is extremely rigid as it is not fluid. It is extremely difficult for the lower rungs of social class to climb the social ladder.