One Nation, One Tax: Evaluating Revenue Performance of the Indian GST System

Abstract

This study provides a comprehensive evaluation of the revenue performance of India's Goods and Services Tax (GST) system, implemented in 2017 as a significant indirect tax reform aimed at unifying the country’s tax structure. Drawing on data from official government reports and high-impact academic literature, the analysis examines the GST’s influence on tax collection, compliance rates, and its broader effects on economic growth. The findings indicate that while the GST has made substantial progress in streamlining the tax regime and improving compliance, its overall revenue performance has been inconsistent. Several initial implementation challenges, along with ongoing sector-specific issues, have constrained its full potential. The study identifies revenue collection trends across various sectors, highlights areas of concern, and suggests further reforms to optimize the GST framework. Contributing to the existing body of research on consumption tax reforms in developing economies, this work offers critical insights for policymakers considering similar reforms. The implications of these findings for future tax policy and administration in India and other developing nations contemplating comprehensive tax system overhauls are also discussed.