THE IMPACT OF THE GST ON THE PURCHASING BEHAVIOUR OF ESSENTIAL ITEMS IN THE CITY OF CHENNAI.

Received: 19.09.2021; Revised: 28.10.2021, Accepted: 26.11.2021, Published Online: 20.12.2021

Mrs. Princy J

Full Time Research Scholar, Faulty of Science and Humanity, Full – time Ph. D Scholar

SRM Institute of Science and Technology, Kattankulathur.

Dr. Durairaj D

 Assistant Professor, Faulty of Science and Humanity, Department of Commerce

SRM Institute of Science and Technology, Kattankulathur.

ABSTRACT:

            According to Louden and Bitta, ‘consumer behavior is the decision process and physical activity, which individuals engage in when evaluating, acquiring, using or disposing of goods and services.’

            The Goods and Services Tax (GST) plays a significant influence in consumer decision-making when it comes to purchasing life’s necessities. The cost of the products and services has a significant impact on the pricing. One of the distinctive features of the indirect taxing system is that it reduces the consumer’s purchasing power. All rational customers will purchase items and services based only on the benefit of a cheap price. As a result, the goods and services tax will provide people with the option of choosing an alternative or entirely altering their cognitive process. In this research paper, five main essentials of non – food items are taken and analyzed in-depth by framing a questionnaire. Those questions will be circulated to the random sample in Chennai city. This research paper aims to investigate how the goods and services tax affects the buying behavior of consumers.

Keywords: Entertainment, transport, Clothing, Accessories and Self-care.