The GST–Income Tax Integrated Deduction Model: An Empirical Strategic Framework for Tax Base Expansion and Consumer-Led Compliance

Most countries, such as the UAE, Saudi Arabia, or the Bahamas, really have a 'single tax' system. This is possible due to the availability of natural resources and a controlled population. But for India, this is not possible due to a lack of natural resources and an uncontrollable population. This paper proposes a bridge: if the government provides an income tax deduction on the GST paid by the customer, a balance can achieved. For achieving this purpose, the researcher proposed the GST-income tax integrated deduction model. This policy helps to understand the how this policy can change the economic behavior of the customers when providing the deduction in income tax though GST. This is an empirical study; therefore 300 customers opinion were assessed and how this policy is beneficial was reviewed with the help of compliance probability model, tax base expansion and revenue function.