The Goods and Services Tax (GST) represents a major reform in India’s indirect taxation system, aimed at enhancing transparency and creating a unified national market. In its advanced phase, GST 2.0 reforms have been introduced to simplify compliance procedures, strengthen digital integration, and address challenges experienced during earlier implementation stages. These reforms are expected to significantly influence consumer awareness, pricing perceptions, and purchasing behaviour. The present study focuses on middle-income households in Shimla district of Himachal Pradesh and aims to evaluate their level of awareness and understanding of GST 2.0 reforms, along with analysing the impact of these reforms on their consumption patterns and purchasing decisions. The study is based on primary data collected through a structured questionnaire administered across different demographic groups. Descriptive and analytical statistical techniques are employed to interpret the data and examine relationships between key variables.

The findings indicate that awareness of GST 2.0 among middle-income households is moderate, with noticeable variations in understanding of tax provisions and pricing mechanisms. The study further reveals that GST-related perceptions have a significant influence on consumption behaviour, affecting spending patterns, brand preferences, and purchasing decisions. Increased awareness is associated with more informed and rational consumer choices, including a greater preference for GST-compliant sellers.The study contributes to the existing literature by providing empirical evidence on the role of tax reforms in shaping consumer behaviour at the household level.