Rate cuts to create more job openings for youth

New Delhi: The Goods and Services Tax (GST) reforms, which kick in from Monday (September 22), represent a landmark step in reshaping India’s taxation system to better serve the aspirations of the country’s youth and create more job opportunities for them in MSMEs and startups, according to an official statement issued on Sunday.

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, the statement said.

The government has introduced a simplified GST structure with significant rate reductions across key sectors of trade and commerce. Essential industries such as leather, footwear, paper, textiles, handicrafts, toys, packaging, and logistics have been covered under this reform. The aim is to boost the present businesses and startups and incentivise the youth to enter into businesses and initiate startups, the statement explained.

By lowering GST slabs to 5 per cent on several goods and rationalising rates in transport and allied sectors, the reforms aim to reduce costs for consumers, ease compliance for traders, and enhance competitiveness for Indian businesses.

GST has been reduced from 12 per cent to 5 per cent on chamois leather, composition leather with a basis of leather or leather fibre, and leather prepared after tanning or crusting.