Revenue Assessment of Goods and Services Tax (GST) in India

Sacchidananda Mukherjee

Working Papers from National Institute of Public Finance and Policy

Abstract: Indian GST completes five years on 30 June 2022. Revenue assessment is important to assess the success of GST in protecting revenues of the Union as well as state governments. By compiling comparable revenue streams for pre- and post-GST regime, we compare the revenue performance of GST for the period 2005-06 to 2021-22RE. Our analysis shows that both the Union and state governments could not reap the benefits of GST in terms of higher revenue mobilization yet. By increasing revenue mobilization from "Non-Shareable Duties" and "Cesses on Commodities" under Union Excise Duties, the Union government could manage the revenue shortfall in GST. The GST compensation (both from the GST compensation fund as well as back-to-back loans from the Centre) helped states to sustain the revenue stream as prevalent prior to introduction of GST. In the post GST compensation regime, some states may face revenue stress. States where dependence on GST compensation (as measured by the share of GST compensation in SGST) as well as the share of SGST in own tax revenue are higher (e.g., Goa, Punjab and Chhattisgarh), they may face relatively higher revenue stress than other states.

Keywords: Revenue assessment; Goods and Services Tax (GST); Revenue protection; GST Compensation; India (search for similar items in EconPapers)
JEL-codes: E62 H20 H26 (search for similar items in EconPapers)
Pages: 29
Date: 2022-07
New Economics Papers: this item is included in nep-mac and nep-pub
Note: Working Paper 385, 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://nipfp.org.in/media/medialibrary/2022/07/WP_385_2022.pdf (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: https://EconPapers.repec.org/RePEc:npf:wpaper:22/385

Access Statistics for this paper

More papers in Working Papers from National Institute of Public Finance and Policy
Bibliographic data for series maintained by S.Siva Chidambaram ( this e-mail address is bad, please contact ).