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Inter-Governmental Fiscal Transfers in the Presence of Revenue Uncertainty: The Case of Goods and Services Tax (GST) in India

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  • Sacchidananda Mukherjee

Abstract

A comprehensive multistage Value Added Tax (VAT) system, viz., Goods and Services Tax (GST), is introduced in India since 1 July 2017. GST encompasses various taxes from Union and State indirect tax bases and it is a dual VAT system with concurrent taxation power to Union and State governments. It was envisaged that removal cascading of taxes and enshrining destination based consumption tax system under GST will encourage investment and improve ease-of-doing business in India. Though it is not right time to comment on success or failure of Indian GST system unless the tax system stabilizes, so far revenue mobilization from GST is not encouraging. The shortfall in GST collection has been acknowledged in the ‘Medium Term Fiscal Policy cum Fiscal Policy Strategy Statement’ of the Union Budget 2019-20.

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  • Sacchidananda Mukherjee, 2019. "Inter-Governmental Fiscal Transfers in the Presence of Revenue Uncertainty: The Case of Goods and Services Tax (GST) in India," Working Papers id:13034, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:13034
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    References listed on IDEAS

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    1. Mukesh Kumar Anand & Rahul Chakraborty, 2019. "Public Expenditure on Old-Age Income Support in India: Largesse for a Few, Illusory for Most," Working Papers id:13035, eSocialSciences.
    2. Rao,R. Kavita & Mukherjee,Sacchidananda, 2019. "Evolution of Goods and Services Tax in India," Cambridge Books, Cambridge University Press, number 9781108473965, October.
    3. Mukherjee, Sacchidandanda, 2020. "Possible Impact of Withdrawal of GST Compensation Post GST Compensation Period on Indian State Finances," Working Papers 20/291, National Institute of Public Finance and Policy.
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    Cited by:

    1. Sacchidananda Mukherjee, 2020. "Estimation and Projection of Petroleum Demand and Tax Collection from Petroleum Sector in India," Journal of Infrastructure Development, India Development Foundation, vol. 12(1), pages 39-68, June.
    2. Pratik Dutta & Mehtab Hans & Mayank Mishra & Ila Patnaik & Prasanth Regy & Shubho Roy & Sanhita Sapatnekar & Ajay Shah & Ashok Pal Singh & Somasekhar Sundaresan, 2019. "How to Modernise the Working of Courts and Tribunals in India," Working Papers id:13028, eSocialSciences.
    3. Chakraborty, Lekha & Nayyar, Veena & Jain, Komal, 2019. "The Political Economy of Gender Budgeting: Empirical Evidence from India," Working Papers 19/256, National Institute of Public Finance and Policy.
    4. Mukherjee, Sacchidananda, 2019. "State of Public Finance and Fiscal Management in India during 2001-16," Working Papers 19/265, National Institute of Public Finance and Policy.
    5. Amarnath, H.K. & Singh, Alka, 2019. "Impact of Changes in Fiscal Federalism and Fourteenth Finance Commission Recommendations: Scenarios on States Autonomy and Social Sector Priorities," Working Papers 19/257, National Institute of Public Finance and Policy.
    6. Pankaj Dikshit & M. P. Gupta & Arpan Kumar Kar & B. Chandra, 2022. "Taxation transformation of businesses enabled by information systems: an empirical study of Goods and Services Tax implementation in India," SN Business & Economics, Springer, vol. 2(9), pages 1-26, September.
    7. Mukherjee, Sacchidananda, 2019. "Whether States have Capacity to Sustain Projected Growth in GST Collection during the Compensation Period?," Working Papers 19/275, National Institute of Public Finance and Policy.
    8. Bose, Sukanya & Noopur, A. & Nayudu, Sri Hari, 2022. "Intergovernmental Fiscal transfers and Expenditure on Education in India: State level analysis, 2005 to 2020," Working Papers 22/377, National Institute of Public Finance and Policy.

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