The Impacts of Goods and Servies Tax (GST) on Middle Income Earners in India

This paper is an analysis of goods and service tax and its impact on business environment in India. The one and only indirect tax which affects all the sections and sectors of our economy is GST. In this new taxation regime, goods and services are considered equally for the taxation process. It is aimed at creating single, unified market which benefits economy, corporate and individuals. Several countries have implemented this GST followed by France, the first country to introduce this taxation system.⁵ It creates commonality of taxing policy between states. Author has started this article with intro on GST, some backgrounds, and tried to highlight the objectives, challenges and threats, opportunities for the development of Indian economy and the overall impacts GST on middle income earners in India. Even GST is good the consumers are worrying of the significant price increase on the basic needs. It has become great burden for the middle income earners. Therefore the main objectives of the study is; First, to analyse the consumer readiness, perceptions, attitude, and acceptance of GST. Second, to analyse the buying behaviour of the middle income group people. Data is collected through structured survey among middle income earners. From various organisations including private and public sectors from various locations, the respondents were chosen randomly. This study reveals some facts to the relevant government authorities so that they could develop some strategies to reduce the financial burden of middle income earners.