Bengaluru: When GST was introduced, it marked a major shift in how India viewed taxation. But for Gen Z, it’s always been the norm. Now, as this generation begins shaping its own relationship with money and consumption, a new survey from the Under25 app sheds light on how GST influences — or doesn’t influence — their spending, style, and financial attitudes.
Polling its nationwide Gen Z community, Under25’s latest study reveals a generation that is simultaneously aesthetic-first, self-aware, and financially prudent — but not necessarily tax-driven. The findings highlight a mix of intuition and independence that defines how young Indians engage with fashion and finance.
Aesthetic First, Economy Later
Contrary to stereotypes of impulsive or trend-chasing shoppers, over 83% of Gen Z respondents said that aesthetics guide their fashion choices. Comfort, personal expression, and visual alignment outweigh trends or price tags.
More than 61% shop primarily for personal satisfaction, while only about 40% of those check for value for money. The insight: Gen Z’s spending starts with self-expression, not price comparison.
Conscious—but Selectively
While 37% identify as value-conscious and 29% as price-sensitive, most respondents keep their spending disciplined — typically under ₹2,000 per item, shopping once or twice a month.
Notably, 93% of Gen Z shop for fashion at least once a month, with over half doing so multiple times. Their mindset reflects financial self-regulation rather than extravagance: they’ve set internal limits and spend freely within them.
“We’re entering a new phase where expression matters more than wealth or herd mentality. Gen Z isn’t afraid to be vocal about what they stand for. For them, fashion isn’t about being told what to wear. It’s about feeling it. A brand’s designs need to tell a story they can see themselves in. It has to be authentic, expressive, and worth the money. Brands that understand this will earn more than just attention. They’ll earn loyalty and a place in the cultural conversation,” says Jeel Gandhi, CEO, Under25.
So, Where Does GST Fit In?
Interestingly, over 80% of respondents said they are aware of GST on their bills, with 31% claiming they never miss it. Yet, awareness doesn’t translate to influence.
Only 16% said GST benefits affect their purchases, and a striking 95% stated that even if certain styles had tax advantages, it wouldn’t change what they buy. The takeaway: identity outweighs incentives.
For Gen Z, fashion remains an act of self-definition, not system optimization.
The Performative Awareness Gap
Even though 30% consider GST worth discussing with peers, 41% of this group admitted they don’t actually check it while shopping. This suggests a gap between financial talk and financial action — a sign that awareness doesn’t always shape behaviour.
Gen Z isn’t disengaged, but their engagement is social and conceptual rather than habitual.
The Streetwear Signal
When asked about their preferred “fashion core,” 37% chose streetwear — a category reflecting comfort, individuality, and cultural identity. This was followed by cottagecore (23%) and dark academia (19%). Only 16% said they don’t follow any aesthetic.
Streetwear’s dominance signals a deeper shift — one that values flexibility and authenticity over conformity or pricing models.
Spending Is Up — But That’s Not the Whole Story
Among frequent shoppers (twice or more a month), 32% said they buy more often since GST rate reductions in select categories. Yet, the increase impacts frequency, not preference.
Gen Z may shop more when prices ease, but what they buy remains dictated by taste, not tax relief.
Even among higher spenders, only 29% spend over ₹3,000 per item, compared to 35% who consciously stay under ₹2,000 — suggesting restraint with access.
What This Generation Is Really Saying
Across all insights, a clear narrative emerges: Gen Z is aware of the system but not ruled by it.
They notice GST, but identity and emotion drive decisions. Shopping for them is expressive, not transactional — and their financial intelligence is evolving organically, shaped more by digital culture than traditional education.
If institutions want to engage them meaningfully, they’ll need to communicate in a language Gen Z understands — visual, authentic, and culturally fluent.
Because for this generation, awareness isn’t the issue — relevance is.
