The introduction of the Goods and Services Tax (GST) in India in 2017 represented a major shift in the country’s taxation framework, replacing multiple indirect taxes with a unified tax structure. This research paper explores the impact of GST on consumer behavior, focusing on purchasing patterns, price sensitivity, demand elasticity, and overall consumption trends. The study relies on secondary data derived from government reports, academic research, and market surveys to assess how GST has affected consumers’ purchasing decisions, their awareness of prices, and changes in spending habits. The findings suggest that while GST has led to lower prices on essential goods and increased transparency, it has also caused price hikes on luxury items, leading to altered consumer spending behavior. The paper concludes by highlighting the need for businesses to adapt to these shifts and the challenges faced by consumers, particularly in relation to inflationary pressures.