IMPACT OF GST ON SPENDING BEHAVIOUR OF THE CONSUMERS

Goods and Service Tax (GST) is a single tax on the supply of goods and services. The statutory tax rates under GST came into effect from 1st July, 2017 which replaced all other applicable indirect taxes. The present study aims to analyse the relationship between income and spending behaviour and to measure the impact of GST on spending behaviour. The researcher has used Factor Analysis and ANOVA to test the hypotheses. The result showed that there is strong relationship between income and Electronic and Sport Equipments and no relationship between income and Wheat, rice, clothing, hair oil, soap, tooth paste, cosmetics, dry fruits, tobacco, fast food, internet connection, newspapers and magazines, fruits and vegetables, entertainment, vehicle maintenance and foot wares. The study also found that impact of GST is more on essential items than comfort and superfluous items.