01st, November 2025: When GST was introduced, it was a relatively large change to what we were used to. But for Gen Z, it has always existed. But what happens when the generation that grew up with GST as the default, starts to build its own relationship with spending?
A new survey by the Under25 app, which polled its nationwide Gen Z community, reveals how GST shapes their fashion choices, shopping behaviour, and financial mindset. The responses were sharp, surprising, and often contradictory, much like the generation itself.
Aesthetic First, Economy Later
For a generation often labelled impulsive or trend-driven, Gen Z’s fashion choices reveal something more intentional. Over 83% of respondents said that aesthetics are central to their style decisions. Comfort, personal expression, and visual alignment matter far more than external trends or influence.
This shows up in how they shop: Over 61% of Gen Z shop primarily for personal satisfaction. Even within that group, only about 40% actively check for value for money. They are still financially prudent, but that’s not their starting point. The starting point is how it looks, feels, and represents them.
Conscious…but Selectively
A large segment of about 37% identified as conscious consumers who track value for money. Another 29% described themselves as price-sensitive. But what’s revealing is how this plays out in practice.
Most respondents shop under a ₹2,000 price point for a single item, and the majority prefer shopping once or twice a month. These are not high-ticket purchases, but they are frequent. In fact, 93% shop for fashion at least once a month, and 53% of these do so more than twice.
It’s not that Gen Z isn’t calculating. It’s that they’ve already set internal guardrails, and within those, they shop freely.
“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, Under 25.
So, Where Does GST Fit In?
Here’s where things get interesting.
Over 80% of respondents said they are aware of GST’s presence on their bills, and 31% say they never miss it. That’s a high awareness rate, especially for a tax that’s rarely explained clearly in schools.
But the awareness doesn’t automatically translate to impact.
Only 16% say GST benefits actually affect their buying behaviour. And a staggering 95% say that even if certain styles or categories had more tax benefits, it wouldn’t influence what they buy. Personal taste, they said, would always win.
This reveals a fundamental disconnect: the system might be built to incentivise certain choices, but for Gen Z, identity overrides incentives.
The Performative Awareness Gap
One of the more layered findings came from the social side of the conversation.
While 30% said GST is important enough to discuss with friends (a sign that financial awareness is socially relevant), almost 41% of this group still don’t check GST while shopping. It raises a quiet but important point: there’s a gap between the willingness to talk about money and the habit of paying attention to it. Gen Z isn’t faking awareness, but they might not be using their knowledge to make purchase decisions.
The Streetwear Signal
When asked to pick their favourite “fashion core,” 37% chose streetwear, which is a category known for comfort, fluidity, and individualism. This was followed by cottagecore (23%) and dark academia (19%). Only 16% said they don’t follow aesthetics at all.
Streetwear isn’t just a trend here. It’s a signal of Gen Z’s broader priorities: ease, expression, and versatility. Categories that speak this language may perform better, regardless of price tags or tax breaks.
Spending Is Up. But That’s Not the Whole Story.
GST does seem to have some impact on behaviour. Among those who shop more than twice a month, 32% say they shop more frequently now that GST rates have reduced in certain categories.
This indicates that price relief does work, but only on frequency, not preference. Gen Z will shop more when it’s easier on the wallet. But they’ll still buy what they want, not what’s tax-incentivised.
This aligns with another revealing stat: for the small group that does spend more than ₹3,000 per item, the percentage (29%) is lower than those who consciously stay under ₹2,000 (35%). It’s not about extravagance, it’s about access and boundaries.
What This Generation Is Really Saying
Across all the numbers, one theme cuts through: Gen Z is aware of the system, they’re just not ruled by it.
They see GST. They feel its impact. But they don’t let it dictate identity. Their shopping isn’t transactional, it’s expressive. And their financial awareness is growing in real-time, shaped more by online content than formal education.
If the system wants this generation to engage more deeply, it has to show up in their language: platform-native, visually led, and culturally relevant.
Because Gen Z doesn’t lack interest. They just lack patience for outdated narratives.