The recent Goods and Services Tax (GST) reforms mark a significant change in India’s taxation framework to align with the aspirations of its youth, according to the Union Government. The GST rate on leather, footwear, textiles, handicrafts, and toys has been lowered to 5 percent to support youth-led MSMEs and exports. Additionally, essential educational materials such as pencils, erasers, and exercise books are now exempt from GST, reducing education costs. The tax on gyms and fitness centres has been decreased from 18 percent to 5 percent, making fitness more affordable and accessible. Furthermore, the GST on two-wheelers (under 350cc) and small cars has been reduced from 28 percent to 18 percent, improving mobility for young people.
Healthcare costs have also been addressed, with GST on medicines lowered to 5 percent or exempted, and health insurance is now GST-free. The government has introduced a uniform 5 percent GST on drones, which supports startups and the Make in India initiative.
