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.