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This study investigates the impact of GST on consumer purchasing behavior and spending patterns.

May 7, 2026Open Access

Impact of GST on Consumer Purchasing Behaviour a Case Study in Siddipet District

Key Points

This study investigates the impact of GST on consumer purchasing behavior and spending patterns.
Analyzed consumer demand elasticity and price sensitivity regarding essential and luxury goods.
Assessed general consumption trends before and after GST implementation in Siddipet District.
GST led to a reduction in costs of essential goods, increasing pricing transparency.
Luxury item prices increased, altering consumer spending behavior due to perceived value changes.
Consumers faced inflationary pressures despite lower prices in some sectors.

Abstract

The Goods and Services Tax (GST), which was implemented in India in 2017, was a significant change to the nation's tax system, substituting a single indirect tax for several tax system. This study examines how GST affects customer behavior, concentrating on demand elasticity, price sensitivity, buying habits, and general consumption trends. The study examines the impact of the Goods and Services Tax (GST) on consumers’ spending patterns, price awareness, and purchase decisions. The findings indicate that GST has contributed to a reduction in the cost of essential goods and enhanced pricing transparency. However, it has also led to an increase in the prices of luxury items, thereby influencing consumer spending behavior. The study further highlights the challenges faced by consumers, particularly in relation to inflationary pressures, and underscores the need for businesses to adapt to these changing market dynamics.

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