Daijiworld Media Network - New Delhi

New Delhi, Sep 20: The Union Government has hailed the latest Goods and Services Tax (GST) reforms as a transformative move toward making India’s taxation system more aligned with the needs of its growing youth population and entrepreneurial spirit.

Calling the reforms “youth-first and future-ready,” the Centre highlighted sweeping rate cuts across essential sectors that touch the everyday lives of young Indians—from education and healthcare to mobility and start-up ecosystems.

To ease pressure on small businesses and boost exports, GST on products like leather goods, textiles, handicrafts, footwear, and toys has been brought down to 5 per cent. Learning tools such as pencils, erasers, and exercise books are now entirely GST-free, reducing educational expenses for students and families.

In a bid to make healthy living more accessible, GST on gym memberships and fitness centres has been cut from 18 per cent to 5 per cent. Meanwhile, tax on two-wheelers under 350cc and entry-level cars has been reduced from 28 per cent to 18 per cent—moves expected to make personal mobility more affordable for the country’s young workforce.

Healthcare reforms were also underscored, with many essential medicines now taxed at just 5 per cent or exempt altogether. Health insurance has been fully freed from GST, in a push to expand affordable medical coverage.

The government’s push for innovation includes a flat 5 per cent GST on drones—a nod to India’s growing drone startup ecosystem and the broader Make in India mission. Daily food items such as packaged paneer, rotis, parathas, and UHT milk now fall under either a Nil or sub-5 per cent tax bracket, helping reduce household costs.

In the housing and infrastructure sector, the reduction of GST on cement from 28 per cent to 18 per cent is expected to bring down construction costs, especially for affordable housing projects.

Officials say the rationalised tax structure not only simplifies compliance but directly supports sectors with high youth involvement, including education, technology, food processing, and MSMEs. The broader goal is to make entrepreneurship more viable, create jobs, and improve ease of living without compromising fiscal prudence.

Framed as part of the country’s roadmap toward “Viksit Bharat 2047,” these reforms reflect an ambition to deliver inclusive growth, foster sustainability, and empower the next generation of Indians to lead with confidence.