Year: 2025
Type: article
Study design: Observational Study
Abstract: This study examines the multifaceted impact of the Goods and Services Tax (GST) on household expenditure in Madhya Pradesh through a primary, survey-based approach. Utilizing a structured questionnaire administered to a diverse sample of households across various income levels and geographical regions, this paper analyzes changes in consumer spending patterns before and after the implementation of GST. The findings reveal a significant, positive effect on household budgets due to the recent rationalization of GST rates, particularly on essential goods, personal care products, and consumer durables. While the reforms have made a wide range of products more affordable, the analysis also highlights the subtly regressive nature of the GST, where the tax burden on lower-income groups remains disproportionately high relative to their consumption. The study concludes that while GST has successfully streamlined the tax structure and stimulated domestic consumption, there is a continued need for targeted policy interventions to further enhance the system's progressivity and ensure a more equitable distribution of the tax burden across all segments of the population.
Authors: Sangita Deota, Saurabh Kumar Sahu
Language: English
Topic: Economic and Fiscal Studies
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: No poverty
Open Access status: diamond
OpenAlex ID: W4414437140