Exploring Consumer Perspectives on Goods and Services Tax (GST) Implementation in Bangalore South: A Comparative Analysis

Abstract

The study aims to explore the effects of GST in Bangalore South by examining consumer insights regarding the changes brought by the tax reform. From a comparative perspective, the study assesses how GST affects consumer perception, economic activities, and tax systems, referencing international contexts. Research indicates that consumer awareness of GST varies, as do their attitudes, purchase preferences, and cultural influences. The findings confirm three key hypotheses: (1) GST significantly altered consumer spending patterns (χ²=31.92, p<0.001), leading to shifts in expenditure across essential and luxury goods; (2) GST failed to improve tax transparency as expected (z=-2.16, p=0.03), with 62.3% of respondents stating that tax disclosures remain unclear; and (3) cultural traditions (37.5%) and legal frameworks (54.8%) critically shape cross-country perceptual differences, impacting GST acceptance. The paper recommends extensive educational programs and stakeholder engagement initiatives to enhance GST awareness and application. Additionally, it highlights research opportunities such as assessing GST’s long-term sectoral impacts, cultural influences on consumer perception, regional disparities in implementation, and the role of technology in taxation. Ultimately, this study expands knowledge on GST’s complex roles and supports informed policy decisions in taxation and economic development.