Purpose – This paper examines the conceptual relationship between the Goods and Services Tax (GST) and consumer price levels in India. It aims to understand how GST, as a major indirect tax reform, has influenced market prices, household expenditure, and overall consumer welfare.

Design/methodology/approach – The study adopts a descriptive and conceptual research design based on secondary data sources, including government reports, publications by the Reserve Bank of India, World Bank reports, and scholarly articles. A qualitative content analysis is employed to interpret sector-specific price trends and conceptual linkages between GST implementation and consumer prices.

Findings – The findings reveal that GST has had mixed effects on consumer prices. While the removal of cascading taxes and introduction of input tax credits contributed to price stabilization and efficiency gains in several sectors, certain goods and services, particularly in the service sector, experienced price increases due to higher tax rates and compliance costs. Essential goods remained largely protected, but indirect cost pressures influenced consumer expenditure in specific categories. Sectoral differences in tax incidence, market competition, and supply chain efficiency explain the uneven impact on prices.

Practical implications – The study suggests rationalization of tax slabs, targeted protection for essential goods, strengthened anti-profiteering measures, and enhanced consumer awareness to ensure that GST supports both economic efficiency and consumer welfare.

Originality/value – This paper contributes to the conceptual understanding of GST’s effect on consumer price levels and provides a framework for policymakers and researchers to evaluate indirect tax reforms in terms of market behavior, inflation, and household welfare