The Goods and Services Tax (GST) has had a profound impact on the fast-moving consumer goods (FMCG) sector in India, particularly in Karnataka’s Mysore and Mandya districts. This study explores the perceptions of 400 consumers and 100 dealers regarding GST’s implications on various FMCG products. Employing statistical tools such as KMO and Bartlett’s test, principal component analysis, and varimax rotation, the research evaluates GST’s effects on consumption patterns, pricing, and compliance requirements. The analysis reveals significant concerns among stakeholders, including the high rates applied to luxury items, compliance complexities for small-scale dealers, and price sensitivity among consumers. While essential goods with lower tax rates are positively perceived, higher rates on processed and premium products deter affordability and profitability. The study emphasizes the importance of simplifying GST rates and enhancing awareness programs to improve understanding and compliance. Recommendations include tax structure reforms, targeted education initiatives, and policy measures to support small-scale dealers. By addressing these issues, the study aims to optimize GST’s impact on the FMCG sector, ensuring equitable benefits for both consumers and dealers while fostering economic growth. This research provides actionable insights for policymakers to refine GST implementation for better socio-economic outcomes.