ANALYZING THE EFFECTS OF RECENT GST AMENDMENTS ON MIDDLE-CLASS HOUSEHOLD BUDGETS

This study critically examines the economic impact of the 2025 Goods and Services Tax (GST) amendments on Indian middle-class households, defined as those earning between ₹5 lakhs and ₹30 lakhs annually. Using government data, market surveys, and expert commentary, the paper analyzes how changes in GST slabs on essential goods and services have influenced household consumption, savings, and debt patterns. Results show mixed effects: while reductions in GST on personal care, consumer durables, and insurance improve affordability and discretionary spending, increases in GST on essential food items and healthcare services have heightened household financial pressure. Policy recommendations highlight the need for transparent pricing, financial literacy, and complementary measures to sustain household welfare.