Name: Salma Begum & N Roshan Choudhury
Country: India

Year: 2026
Volume: Volume No: 13, Issue No: 1, Year: 2026
Page Number: 110-120
DOI: https://doi.org/10.5281/zenodo.19467904

ABSTRACT
The GST system was another significant structural change in the indirect taxation framework in India and substituted various cascading taxes with one taxation system. GST after the rate has been revised several times since its introduction in 2017, with a deliberate effort to form an equilibrium based on revenue generation, inflation control, and radiation of consumer behavior. This empirical research paper will discuss the effects of the changes in GST rates on consumer spending in India, and in the context of the response of individual income and types of products to the changes. The rich data was gathered by use of a structured questionnaire with 157 consumers based on various income levels, and government reports and published literature were the sources of the secondary data. Data analysis was done by using statistical tests such as Chi-square tests, One-Way ANOVA, and Pearson correlation analysis. The results indicate that consumer expenditure behavior is greatly affected by changes in the GST rates, with consumers responding more strongly to an upward increase in the GST rate than to a reduction in the rate. Income level is also a significant factor in the perceived effect, whereby high-income groups reported greater effects. There is a high positive correlation between consumer awareness of GST revisions and behavioral response
(r = 0.623, p < 0.001). The paper discusses the significance of constant taxation policies as well as increased consumer education to support the unchanging consumption aspects and the growth of the economy.

Keywords GST rate revisions, consumer spending patterns, tax policy, income groups,
consumer behaviours, India