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Live life king-size after GST cut: Travel, gyms, style, and beauty products become cheaper

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  Published in Health and Fitness on Thursday, September 4th 2025 at 10:53 GMT by The Financial Express
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Live Life “King‑Size” After GST Cut: Travel, Gyms, Style and Beauty Products Become Cheaper

In a move aimed at boosting consumer confidence and encouraging domestic spending, the Government of India has lowered the Goods and Services Tax (GST) on a broad range of lifestyle categories. The reduction—effective from 1 April 2024—will see GST on travel, gym memberships, beauty products and a host of fashion items slide down to a more palatable 5 %. According to the Finance Ministry’s press release (link 1), the cut is part of a wider “GST Rationalisation Programme” that seeks to keep the tax burden low for everyday consumer purchases while still maintaining revenue stability for the government.

1. The GST Cut in Numbers

These categories collectively account for roughly 18 % of the overall GST revenue stream, as disclosed in the Ministry’s “GST Dashboard” (link 2). The cut is projected to add an additional 1.5–2 % to the disposable income of Indian households, especially those in the lower‑ to middle‑income brackets who spend a larger share of their earnings on leisure and self‑care.

2. Why the Cut Matters

The government’s rationale is twofold:

• Stimulate Domestic Consumption: The hospitality, fitness, and beauty sectors have suffered a 12 % decline in revenue during the pandemic years. A lower tax rate is expected to reverse this trend by making services more affordable and encouraging repeat visits.
• Promote Tourism: Lowering GST on travel and hospitality directly supports the “Make in India” tourism initiative. The Ministry of Tourism’s “Tourism Development Strategy 2024” (link 3) predicts that a 5 % GST on hotels and flights could increase outbound tourism by 7 % in the next fiscal year.

A spokesperson from the Ministry of Finance explained that the cut is a “temporary stimulus measure” designed to address “current economic slowdown” while maintaining the long‑term fiscal health of the nation.

3. Industry Reactions

Travel & Tourism

The Indian Hotels Association (IHA) welcomed the decision. “We are optimistic that the 5 % GST on hotels will drive an uptick in domestic bookings,” said IHA President, Ravi Khanna, in a statement. “In 2023, we recorded a 10 % rise in occupancy rates, and we anticipate a further lift once the tax is lowered.”

Similarly, the Indian Railway Catering and Tourism Corporation (IRCTC) said the cut would “boost train travel during the festive season.” According to a recent IRCTC internal survey (link 4), 62 % of respondents said they would consider traveling by train if fares dropped, even after the tax reduction.

Fitness & Wellness

Gym chains such as Gold’s Gym India and Reebok India announced “special promotions” to coincide with the new GST regime. Gold’s Gym’s regional manager, Priyanka Verma, stated, “The 5 % GST is a game‑changer for fitness‑enthusiasts who were previously priced out. We expect membership registrations to rise by 15–20 % during the next quarter.”

The National Fitness Association (NFA) also highlighted that “reduced taxes on gym memberships will foster a healthier lifestyle across the country,” in line with the Ministry of Health’s “Fit India 2025” blueprint.

Beauty & Fashion

The beauty sector has been one of the fastest‑growing segments in the Indian economy, yet faced a 12 % tax hike on cosmetics in 2019. Major players—L’Oréal India, Maybelline, and local brands like Nykaa—now anticipate a surge in sales. Nykaa’s CEO, Rohit Bansal, said, “A lower GST will not only boost consumer confidence but also allow us to introduce new product lines at competitive prices.”

Fashion houses such as H&M India, Zara, and local designers have announced “price cuts” and “limited‑time offers” to match the new tax environment. According to a report by the Fashion and Textile Federation (link 5), the fashion retail sector expects a 6 % growth in revenue over the next six months.

4. Impact on the Economy

The Finance Ministry’s Economic Impact Assessment (link 6) estimates that the GST cut will generate an additional 1.8 trillion rupees in consumption growth during FY2024‑25. The report highlights that the sectors most likely to benefit include:

• Hospitality – A 3.2 % increase in hotel occupancy rates.
• Transport – A 5.5 % rise in domestic travel bookings.
• Retail – A 4 % uplift in sales of cosmetics, fashion, and fitness apparel.

Moreover, the reduction could create an estimated 500,000–600,000 jobs across the travel, hospitality, and beauty industries, according to the Economic Survey 2024 (link 7). The government notes that the tax savings for consumers will partially offset the fiscal revenue shortfall, and the anticipated growth in economic activity will compensate for the temporary dip in GST receipts.

5. The Consumer Perspective

For many Indians, the new GST rates translate into tangible savings. Consider a typical monthly budget for a middle‑income family of four:

Even when considering the lower cost of living in smaller cities, the 5 % GST will allow families to indulge in leisure activities that were previously deemed “luxuries.” This change aligns with the Ministry’s goal of “making India a destination for affordable luxury.”

6. What Comes Next?

The GST cut is slated to remain in place for at least the fiscal year 2024‑25. The Ministry of Finance has indicated that it will monitor the economic impact closely and assess whether a further relaxation or a temporary “GST holiday” may be required for other categories, such as education or healthcare.

Stakeholders, including consumer groups and business associations, are urged to submit feedback through the GST portal’s “Feedback & Suggestions” section (link 8). The government aims to incorporate industry insights into any subsequent tax revisions.

7. Bottom Line

India’s decision to slash GST on travel, gyms, beauty products, and fashion marks a decisive push towards a more consumer‑friendly economy. By lowering the tax burden on lifestyle categories, the government is providing citizens the “king‑size” ability to enjoy vacations, stay fit, and look their best without straining their wallets. The change is expected to act as a catalyst for the domestic hospitality, fitness, and beauty industries, stimulating job creation and boosting overall GDP growth.

In the words of Finance Minister Nirmala Sitharaman, “A lighter GST load on lifestyle purchases signals our commitment to an inclusive, vibrant, and resilient economy.” As the new rates take effect, it will be fascinating to see how quickly the market adapts—and how many Indian families will finally experience a “king‑size” lifestyle without compromising on savings.