2024, Vol. 7, Issue 2

author(s)
Rahul Kanaujiya and Himanshu Shekhar Singh

abstract
The successful implementation of India’s Goods and Services Tax (GST) signaled a significant change to the country’s taxation structure, which in turn affected several economic activities, such as spending habits and consumer behavior. The purpose of this empirical research is to examine the impact of the Goods and Services Tax (GST) on expenditure by Indian consumers across income brackets. The analysis compares purchasing decisions, spending habits, and expenditure distribution before and after the implementation of GST. Considerations such as financial adaptability, shifts in discretionary spending, and customers’ emotional reactions to the new expenditure structure are all part of the analysis. Also, to get a feel for the fiscal effects of GST, the study looks at different spending habits in urban and rural regions. This research aims to improve consumer welfare in the Indian economy by providing a comprehensive understanding of the wider consequences of GST on consumer behavior via statistical analysis and overviews. It also contributes to the development of solutions that might mitigate any unfavorable effects.