Revenue Implications of GST on Indian State Finances

Sacchidananda Mukherjee

Working Papers from National Institute of Public Finance and Policy

Abstract: Assessing the revenue implications of GST on Indian state finances cannot be contained to compare the revenue stream which is subsumed into GST with State GST collection alone. Since GST subsumes many taxes from state tax bases, comparing the revenue performance of taxes which are outside the GST framework would be equally important. Moreover, in federal system revenue implication of shortfall in tax collection of the federal government is also likely to spill-over to sub-national finance in terms of lower tax devolution. Sustaining revenue streams of state governments is important for sustainable Public Finance Management (PFM) and therefore a comprehensive assessment of state finances before and after GST would be important. This paper attempts to fill the gap in exiting literature by assessing the revenue of 18 major states during pre- and post-GST periods.

Keywords: Revenue assessment; Goods and Services Tax (GST); State Finances; Revenue protection; GST Compensation; India (search for similar items in EconPapers)
JEL-codes: E62 H20 H26 (search for similar items in EconPapers)
Pages: 34
Date: 2023-01
New Economics Papers: this item is included in nep-pbe and nep-pub
Note: Working Paper 388, 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Chapter: Revenue Implications of GST on Indian State Finances (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:npf:wpaper:23/388

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