A Cluster Analysis Approach Towards Goods And Services Tax After Implementation

Gowtham Ramkumar*
Assistant Professor, Department of Commerce, Madras Christian College, Chennai, Tamil Nadu, India.
Periodicity:September - November'2018
DOI : https://doi.org/10.26634/jmgt.13.2.14366


Any indirect tax will have an impact on the consumer spending ability. Even direct taxes will affect the consumer spending ability but confines more to the tax payers. Goods and Services Tax (GST) has also affected the purchasing capacity of the consumers. This is because any economic reform will result in short term or medium term inflation which will reduce the purchasing power of the consumers. This research seeks to group the consumers based on the spending ability after goods and services tax implementation. Cluster analysis is a most commonly used analytical technique to classify homogeneous groups. The study classifies consumers into three major clusters and tries to explain each of these cluster characteristics by indicating priorities of the clusters based on their spending ability. While there are many type of cluster analysis being followed, this study uses K-means clustering to classify homogenous groups. Finally, the study arrives at a meaningful conclusion and can be used as a basis for further researches relating to taxes and consumer choices.


Spending Ability, Goods and Services Tax, Purchasing Capacity, Cluster Analysis, K-means Clustering.

How to Cite this Article?

Ramkumar, G. (2018). A Cluster Analysis Approach Towards Goods And Services Tax After Implementation. i-manager's Journal on Management, 13(2), 24-30. https://doi.org/10.26634/jmgt.13.2.14366


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