Distributional Impact of Indian GST

Sacchidananda Mukherjee

Working Papers from National Institute of Public Finance and Policy

Abstract: We estimate GST rate-wise distributional impact of GST across different consumer groups in India for 2021-22. Multiple rate structure and fixation of GST rates based on product specification make it difficult to assign a specific GST rate (or estimation effective GST rate) across items (or group of items) of consumption. In absence of recent consumer expenditure survey of the National Sample Survey Organisation (NSSO), we use CMIE's Consumer Pyramids Household Survey (CPHS) for 2021-22. We distribute all India average monthly per capita consumption expenditure (MPCE) on 123 items (or group of items) across 9 tax categories [viz., exempted, very low (exempt to 5 , low (5

Keywords: distributional impacts; tax incidence; progressive; regressive; Goods and Services Tax (GST); Value Added Tax (VAT); rate restructuring; India (search for similar items in EconPapers)
JEL-codes: D30 E21 H22 Z18 (search for similar items in EconPapers)
Pages: 32
Date: 2023-10
New Economics Papers: this item is included in nep-pbe and nep-pub
Note: Working Paper 403, 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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