What question did this study set out to answer?

To assess if the introduction of GST has altered the distribution of tax revenue among Indian states, focusing on inter-state inequality.

May 7, 2026JOURNAL OF ADVANCE AND FUTURE RESEARCH0 citationsOpen Access

Did GST Reduce Inter-State Revenue Inequality? A Comparative State-Wise Analysis of Pre- and Post-GST Tax Revenues in India

KGKalyani GortiUnited States Department of Commerce SPS Sai Prerana ESEguri Helen Senorita

Key Points

To assess if the introduction of GST has altered the distribution of tax revenue among Indian states, focusing on inter-state inequality.
Comparative analysis of state-wise tax revenues before and after GST implementation in 2017.
Examination of changes in revenue distribution patterns across states.
Analysis of tax revenue sources and their impact on inter-state inequality.
GST implementation did not significantly reduce inter-state revenue inequality.
Some states experienced increases in revenue, while others saw stagnation or decline.
Overall fiscal benefit was unevenly distributed, reinforcing certain disparities.

Abstract

The introduction of the Goods and Services Tax (GST) in 2017 marked a major turning point in India’s fiscal landscape. By subsuming multiple state-level indirect taxes under a single, unified system, GST promised to simplify taxation and create a truly national market. But beyond these efficiency gains, an important question arises: has GST changed how tax revenue is distributed across Indian states? In particular, has it reduced inter-state revenue inequality or reinforced existing disparities?

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