New Delhi, Sep 21 (NationPress) The implementation of the Goods and Services Tax (GST) reforms, effective from Monday (September 22), marks a significant milestone in transforming India’s taxation framework. This adjustment aims to align with the ambitions of the nation’s youth while enhancing job prospects, particularly in MSMEs and startups, as stated in an official release.

Key sectors with high youth engagement—including education, automobiles, technology, handicrafts, footwear, healthcare, food processing, and textiles—are prioritized to lower costs, improve competitiveness, and stimulate innovation. These reforms not only alleviate financial pressures on families and businesses but also reinforce India’s commitment to inclusive growth, sustainability, and empowering the next generation.

The government has unveiled a streamlined GST structure, featuring considerable rate reductions across vital trade and commerce sectors. Essential industries such as leather, footwear, paper, textiles, handicrafts, toys, packaging, and logistics will benefit from these reforms. The goal is to bolster existing businesses and startups while motivating the youth to launch their ventures, according to the statement.

By reducing GST slabs to 5 percent on numerous goods and optimizing rates in transport and related sectors, the reforms seek to cut consumer costs, simplify compliance for traders, and enhance the competitiveness of Indian enterprises.

For instance, GST has been slashed from 12 percent to 5 percent on chamois leather, composition leather (derived from leather or leather fiber), and leather processed through tanning or crusting. Additionally, footwear priced up to ₹2,500 per pair now incurs only 5 percent GST, directly benefiting young consumers. Similarly, the GST on job work related to hides, skins, and leather has also dropped from 12 percent to 5 percent, easing production costs for MSMEs and encouraging young entrepreneurs.

Furthermore, the GST rate reductions extend to agro-based and eco-friendly wood alternatives, promoting sustainable manufacturing and enhancing MSME competitiveness. The rate has decreased from 12 percent to 5 percent for materials like rice husk board, glassfiber reinforced gypsum board, cement bonded particle board, jute particle board, bagasse board, and sisal fiber board. The objective is to support MSMEs engaged in wood production while fostering eco-friendly substitutes.

The handicrafts sector, crucial for young artisans and exporters, will see benefits from tax rationalization that makes traditional crafts more accessible and globally competitive. This includes a GST cut from 12 percent to 5 percent on wooden, stone, and metal idols. The same rate applies to paintings, drawings, original engravings, handcrafted candles, carved wood products, handbags (including pouches and purses), stone art ware, stone inlay work, and kitchenware made from clay and terracotta. These reforms are poised to strengthen India’s cultural economy and enhance the livelihoods of young artisans.

In textiles, the GST rationalization eliminates structural inconsistencies, reduces costs, boosts demand, supports exports, and sustains jobs. For example, GST on man-made fibers (MMF) has been reduced from 18 percent to 5 percent. The GST on ready-made garments priced up to ₹2,500 (raised from ₹1,000) is now set at 5 percent.

This rate reduction will render Indian MMF-based garments more competitively priced in global markets, aiding India’s aspiration to become a global textile center while supporting emerging and young exporters.

Education, nutrition, caregiving, and recreational activities are fundamental for every child's growth. The recent GST rationalization initiatives represent a groundbreaking move towards making educational resources, mobility, and childcare more affordable for families throughout India.

Specifically, GST on pencils, sharpeners, crayons, exercise books, graph books, maps, and charts has been lowered from 12 percent to zero. The GST on erasers has been similarly reduced from 5 percent to zero. This decrease will make essential learning supplies more affordable, particularly for government schools, and rural children and youth. It will lessen educational expenses for families, promote higher school enrollment, and enhance learning outcomes while simultaneously boosting demand for domestic stationery production, especially among MSMEs.

Additionally, GST on bicycles is down from 12 percent to 5 percent, making them more affordable and facilitating easier access to schools for children in rural and semi-urban regions.

Moreover, GST on gyms and fitness centers has been significantly reduced from 18 percent to 5 percent. This adjustment is a vital step toward fostering a healthier and more active India. What was once considered a luxury is now becoming accessible to broader segments of society, aligning with the larger public health agenda focused on preventive care and wellness promotion, particularly among the youth.

The lowered GST makes gym memberships and fitness services more attainable, encouraging greater participation from youth and middle-class families in structured health and wellness programs, the statement concluded.