Tax Collection Reformation and Implications of GST in Fiscal Management

Authors:

A.Venkataraman M.A, M.Phil[1]

Dr. V.S. Murali[2]

Abstract

The implementation of the Goods and Services Tax (GST) in India in 2017 constituted a significant overhaul in the nation's tax collecting framework, substituting several indirect levies with a consolidated one. The Goods and Services Tax (GST) has markedly increased fiscal transparency, expanded the tax base, and strengthened compliance using digital tools like as e-invoicing and the Goods and Services Tax Network (GSTN). The ramifications for fiscal management are significant, providing more predictable revenues for both central and state governments. Nonetheless, obstacles persist, including diminished state autonomy in tax policy and dependence on central compensation for revenue deficits. Ongoing enhancements in compliance, rate reduction, and digital infrastructure are essential for the sustained success of GST.

Key words: Goods and service tax, Fiscal, tax collection

[1] Research Scholar, PG and Research Department of Economics at A.M. Jain College, Chennai

[2] Associate Professor and Head of the PG and Research Department of Economics at A.M. Jain College, Chennai