GST Buoyancy and Economic Growth: A Comparative Analysis of Select Indian States

The Goods and Services Tax (GST), introduced in India in 2017, replaced multiple indirect taxes with a unified tax system aimed at simplifying tax compliance and boosting economic growth. This study focuses on GST buoyancy, which measures the responsiveness of tax revenues to changes in economic activity, particularly Gross State Domestic Product (GSDP). Using data from 2017 to 2023, the study examines GST collections in selected Indian states across CGST, SGST, and IGST. The findings reveal that states like Maharashtra, Kerala, and Karnataka demonstrate high tax buoyancy, reflecting efficient revenue growth. However, some states face challenges, with GST revenue growth lagging behind economic expansion. The analysis highlights the role of GST in improving tax compliance and transparency, while also addressing the variations in economic performance and tax revenues across states. Overall, GST has shown potential for long-term economic stability, but regional disparities need further attention.