UNRAVELLING GST’S IMPACT ON CLOTHING PRICES AND CHOICES: EVIDENCE FROM RAJASTHAN CONSUMERS
DOI:
https://doi.org/10.29121/ijetmr.v12.i11.2025.1717Keywords:
GST, Consumer Behaviour, Textile Sector, Clothing Prices, RajasthanAbstract
This paper aims to examine the impact of Goods and Service Tax (GST) on clothing prices as well as procurement behaviour in the state of Rajasthan with a case of Jaipur, Sanganer, and Bagru. For this purpose, 120 samples of the primary survey were used to assess how women GST has impacted consumer patterns and preferences in the textile sector. Descriptive analysis demonstrated that a large number of customers think that there was an increase in prices the clothing sector after the GST demise leading to the challenges of purchasing them to be more significant among the middle- and lower-income groups with available price elasticity for cost sharing among these groups. In fact, regression analysis showed that price sensitivity discourages repeat purchases, while those able to buy resorted to cheap and unbranded goods. The new rich, on the other hand, was found to portray an insignificant negative impact on purchases; this group bought high-priced fashionable clothes in the market. The conclusion explains a two-sided effect; one is that GST would enhance the transparency of retail but faces the challenge of pricing. Hence, the article highlights the need for the review of government policies and provides some long-term strategies for the various industries in particular consumer textiles industry.
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