Revenue Performance of the Indian GST System-An Evaluation

Abstract

This research paper examines the implementation and impact of the Goods and Services Tax (GST) in India, widely regarded as a landmark reform in the country's tax structure. Utilizing revenue and compliance data from 2018-19 to 2023-24, the study highlights significant trends in national revenue collections and taxpayer filings. Findings indicate a robust growth in revenue, with collections rising from ?103,459 crore in April 2018 to ?187,035 crore in April 2024, despite disruptions during the COVID-19 pandemic. The analysis of GSTR1 filings reveals a notable increase in compliance, particularly between 2020-21 and 2021-22, reflecting improved awareness of GST obligations among taxpayers. In contrast, GSTR3B filings exhibited fluctuations, with a significant decline in compliance noted in 2021-22, suggesting challenges in sustaining taxpayer engagement post-pandemic. The paper concludes by proposing targeted strategies to enhance compliance, including ongoing taxpayer education, process simplification, technology utilization, and policy reviews. These recommendations aim to foster a more compliant tax environment, ensuring the continued effectiveness of the GST framework in India.