GST reforms reaffirm India`s commitment to empower youth, inclusive growth
The recent Goods and Services Tax (GST) reforms represent a landmark step in reshaping India’s taxation system to better serve the aspirations of its youth, the Union Government said on Saturday.
GST on leather, footwear, textiles, handicrafts, and toys has been reduced to 5 per cent to boost youth-led MSMEs and exports. Meanwhile, Essential learning materials like pencils, erasers, and exercise books have been made GST-free to ease education costs.
GST on gyms or fitness centres was slashed from 18 per cent to 5 per cent, making fitness more affordable and accessible. At the same time, the tax rates on two-wheelers (under 350cc) and small cars have been reduced from 28 per cent to 18 per cent, enhancing youth mobility.
Moreover, Healthcare has been made affordable with GST on medicines cut to 5 per cent or to Nil, while health insurance is exempted from GST.
The government has also introduced a uniform 5 per cent GST on drones, supporting startups and the Make in India initiative.
Additionally, Daily food items like UHT milk, roti, paratha, paneer, and packaged snacks bear a rough under 5 per cent or a Nil tax slab, easing household expenses.
The GST rationalisation also promotes affordability, healthier lifestyles, and improved ease of living for youth and households.
The Union government has also lowered the indirect tax on cement from 28 per cent to 18 per cent, lowering housing and infrastructure costs.
By simplifying tax structures, reducing rates across key industries, and addressing long-standing anomalies, these reforms are designed to create an enabling environment for entrepreneurship, job creation, and affordable living.
Sectors with high youth participation—such as education, automobiles, technology, handicrafts, footwear, healthcare, food processing, and textiles —have been prioritised to lower costs, boost competitiveness, and encourage innovation.
Beyond reducing the financial burden on households and businesses, the reforms strengthen India’s vision of inclusive growth, sustainability, and empowerment of the next generation.
