The implementation of the Goods and Services Tax (GST) in India marked a significant reform in the country’s indirect tax system by replacing multiple taxes with a unified structure. This study examines the impact of GST on consumer purchasing behaviour, focusing on how pricing, tax transparency, and product affordability influence buying decisions. GST has simplified the tax process, reduced cascading effects, and brought uniformity in prices across different states, which has directly affected consumer perception and consumption patterns. The introduction of GST has led to price changes in various goods and services, where essential commodities became more affordable due to lower tax rates, while some luxury and non-essential items experienced price increases, thereby influencing consumer preferences. As a result, consumers have become more price-conscious and tend to compare products before making purchase decisions. GST has also enhanced transparency in billing, enabling consumers to clearly understand the tax component, which has increased awareness and trust in the taxation system. Furthermore, the growth of digital transactions and online shopping has been supported by GST, as it provides a structured and consistent tax framework for e-commerce platforms, encouraging consumers to shift towards digital purchasing methods. The study also highlights that GST has contributed to changes in spending behaviour, particularly among middle-income groups who are more sensitive to price fluctuations. Overall, GST has played a crucial role in shaping modern consumer behaviour by promoting informed decision-making, increasing transparency, and influencing consumption patterns, and it can be concluded that GST not only impacts pricing but also drives long-term behavioural changes among consumers in India.
Sri et al. (2026) studied this question.