Economics at your fingertips  

Analysing the Impact of GST on Tax Revenue in India: The Tax Buoyancy Approach

Udai Lal Paliwal, Nitin Kishore Saxena and Ashutosh Pandey

International Journal of Economics & Business Administration (IJEBA), 2019, vol. VII, issue 4, 514-523

Abstract: Purpose: The purpose of this paper is to analyse the impact of newly introduced Goods and Services Tax (GST) on tax revenue in India. This paper adopts the tax buoyancy approach for analysing the impact of GST on tax revenue. Design/Methodology/Approach: We conducted our study using semi logarithmic ANCOVA regression model in which we introduced Value Added Tax (VAT) and GST as dummy variables. Findings: Our study finds that after the introduction of GST India’s tax revenue has become less responsive to the changes in GDP. It indicates that post introduction of GST there is some reduction in the tax burden on the consumers and corporates which supports the government’s justification behind the introduction of GST. Practical Implications: The study is expected to help the government in deciding the future course of action towards effective policy making for revenue generation. Originality/Value: Since none of the existing studies analyses the impact of GST on tax revenue our study is unique and fulfils the gap in the existing literature.

Keywords: Goods and Services Tax; GST; Tax Buoyancy; VAT (search for similar items in EconPapers)
JEL-codes: H20 H27 H30 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in International Journal of Economics & Business Administration (IJEBA) from International Journal of Economics & Business Administration (IJEBA)
Bibliographic data for series maintained by Marios Agiomavritis (). This e-mail address is bad, please contact .

Page updated 2020-01-02
Handle: RePEc:ers:ijebaa:v:vii:y:2019:i:4:p:514-523