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GST Cuts & Co-living Craze: Two Big Clues To A Changing India

GST Cuts & Co-living Craze: Two Big Clues To A Changing India

The Weekend Playlist

September 07, 2025 • Estimated Reading Time: 6 minutes

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Good Morning. Today’s edition is a small yet impactful one. From checkout counters to city rooftops, India is in the middle of a reset. The government’s bold GST 2.0 reform promises cheaper essentials and a simpler tax regime, even as businesses scramble to manage the transition. At the same time, a booming co-living market — projected to grow fivefold by 2030 — is changing how young Indians rent, live, and spend. Together, these shifts capture a bigger story: an India that is reworking both how it consumes and how it lives.

WEEKEND EDITION

GST 2.0: India’s Big Tax Reset

It’s being called one of the most historic tax moves since GST’s launch in 2017. The government has slashed rates across hundreds of items — from food and medicines to ACs and cars — while simplifying the structure to just two slabs: 5% and 18%. Luxury goods like big cars, cigarettes, and fizzy drinks will now sit in a steep 40% bracket.

But here’s the kicker: while consumers may cheer lower prices, businesses are scrambling to re-label products, rework pricing, and deal with unsold inventory taxed at older, higher rates. The government expects to lose ₹48,000 crore in revenue — unless a surge in consumption offsets it.

Key Highlights:

Tax relief, festive timing: GST cuts kick in from September 22, just ahead of Diwali.
Winners: FMCG, pharma, and consumer goods may see a demand spike.
Losers: Dealers and auto-leasing firms stuck with higher-taxed old stock.
Systemic change: Consensus between Centre and states makes this a rare reform moment.
What’s next: Experts say unfinished business includes fixing input tax credit (ITC) woes, service sector anomalies, and widening GST to fuel and real estate.

The bottom line: GST 2.0 is bold and consumer-friendly, but how smoothly businesses manage the transition will decide whether this becomes a true consumption booster or a short-term disruption.

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THE SIGNAL DAILY

The Catch Behind India's Co-living Boom

Finding a house on rent in India often feels like running an obstacle course. Landlords with arbitrary rules — “families only,” “no bachelors,” “IT professionals preferred” — make the hunt even harder.

Now, with millions of young people moving to cities for work and study, a new trend is taking off: co-living spaces. Think of them as hostels reimagined for adults — where a professional company manages the housekeeping, Wi-Fi, even your meals, so you can focus on work (or fun).

The numbers tell the story: India’s co-living market was pegged at ₹4,000 crore in May 2025 and is projected to grow 5x by 2030, hitting a massive ₹20,600 crore.

But why the sudden rage? What makes co-living more attractive than flatmates or PGs? And how is it reshaping the way India’s young live in cities?