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The Role of GST in Enhancing Tax Revenue in India: A Critical Evaluation

Authors:

By Mr. Ayush Agrawal* and Dr. Gazala Yasmin Ashraf**

*Student MBA; **Professor and Head (UG Management) Amity Business School,

Amity University Chhattisgarh, gyashraf@rpr.amity.edu, agrawalayush936@gmail.com

Abstract:

The Goods and Services Tax (GST), implemented in India on July 1, 2017, marked a significant shift in the country’s indirect tax structure. This research paper critically evaluates the role of GST in enhancing tax revenue in India based on secondary data. It explores the pre- and post-GST revenue trends, efficiency of tax collection, and structural improvements in the tax system. Data from government sources, reports, and existing literature are used to assess the revenue performance and economic implications of GST. The study reveals a mixed impact, with increased tax compliance and a broadened tax base on one hand, and initial implementation challenges and revenue volatility on the other.

Keywords:

GST, tax revenue, indirect tax, India, fiscal reform, revenue mobilization, tax compliance Introduction

India's taxation system underwent a historical transformation with the introduction of the Goods and Services Tax (GST). Replacing a complex structure of multiple indirect taxes, GST was designed to unify the tax system and create a single market. One of the central expectations from GST was its potential to enhance tax revenue through improved compliance and transparency. This paper seeks to evaluate how far GST has achieved this aim.