GST And Social Change In India: A Study Of Economic And Societal Implications
- IJLLR Journal
- 3 days ago
- 2 min read
Anuj Yadav, Xavier's Law School, St. Xavier's University Kolkata
Harsh Vardhan Singh, Himachal Pradesh National Law University
ABSTRACT
The Goods and Services Tax (GST) was implemented in India on July 1, 2017, marking a significant tax reform designed to unify the indirect taxation framework, eradicate cascading taxes, and sister a smooth national market.
In recent years, the government has adjusted GST rates on various goods and services, sparking considerable debate about its effects on different segments of society. This paper aims to assess the impact of the new GST rates on India's middle class, a demographic that constitutes a large part of the nations consumer base and plays a crucial role in driving economic growth.
The middle class in India is especially responsive to price fluctuations in everyday goods and services, which include essential items, utilities, consumer durables, education, healthcare, and lifestyle products. Adjustments in GST rates directly influence disposable income, purchasing power, and consumption habits for this demographic. This study investigates how the revised GST rates have affected household spending, consumption patterns, and overall economic sentiments among middle income families. It also examines whether these changes have been progressive, regressive, or neutral, given that GST is a consumption-based tax applied uniformly across income levels, in contrast to the progressive nature of income tax.
In terms of methodology, the paper utilizes blend of quantities and qualitative analysis. It analyses household surveys, government data on GST collections, and price indices to identify spending patterns before and after the rate changes. Furthermore, interviews with households, small businesses, financial experts offer valuable perspectives on the perceived advantages or disadvantages of these adjustments. The research also takes into account the role of the Goods and Services Tax (GST) introduced in India on July 1, 2017, as a pivotal tax reform aimed at consolidating the indirect tax structure, eliminating cascading taxes, and encouraging a seamless national market.
Keywords: GST, middle class, India, tax reform, household expenditure, indirect taxation.
