One Nation, One Tax: Evaluating Revenue Performance of the Indian GST System

This study compares comparable income streams from the pre- and post-Goods and Services Tax (GST) eras to assess the revenue performance of the GST system in India from 2012–13 to 2022–23. The goals of the introduction of the GST were to improve compliance, increase revenue efficiency, and establisha single tax system. Through a thorough examination of fiscal statistics, including tax collections and growth rates, this research assesses the effectiveness of the GST system by examining revenue patterns and compliance rates. According to a study, the GST system has improved the post-GST tax buoyancy for thefederal, state, and local governments. The GST-to-GDP ratio of the Union and state governments has not yet decreased during the post-GST period as compared to the comparable share of each revenue stream in GDP during the pre-GST period. This analysis makes recommendations for policy improvements tomaximize tax collection and promote a fairer and efficient tax system by shedding light on how well the GST has performed in improving revenue performance.