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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM66004
Volume:
10 |
7 |
Jul 2026
Pages:
1-30
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Senior Data Analyst
Tax Research & Policy Cell, GST Department, Government of Kerala, India
The Integrated Goods and Services Tax (IGST) settlement mechanism plays a vital role in ensuring the equitable distribution of revenue among States and the Union under India's GST regime. This study presents a state-wise comparative analysis of Regular IGST Settlements, Ad hoc IGST Settlements, and Total IGST Settlements across all States and Union Territories from 2017–18 to 2025–26. The research examines interstate fiscal variations, settlement discrepancies, growth trends, and state rankings, with particular emphasis on Kerala's comparative position. Using secondary data from official GST sources, the study employs descriptive and comparative analytical techniques to evaluate settlement patterns and regional disparities. The findings provide insights into the effectiveness of the IGST settlement mechanism and offer policy recommendations for improving transparency, equity, and fiscal efficiency in India's GST framework.
KEYWORDS
The IGST Settlement pattern from 2017–18 to 2025–26 shows the gradual maturity of India's GST settlement mechanism. In the early years, Ad hoc Settlements were used as advance payments to support States before final reconciliation. Later, negative Ad hoc values reflected recovery of excess advance payments. From 2024–25 onwards, the absence of Ad hoc Settlements shows that the system moved towards a more transparent and regularized settlement process. Kerala's IGST settlement performance remained steady, but its national rank declined over time due to the stronger growth of larger industrial and high-consumption States. Kerala's lower recovery in 2023–24 suggests better settlement accuracy and fewer excess advance adjustments. Overall, Kerala shows stable IGST settlement performance, but its relative position is lower than major manufacturing and interstate trade-driven States.
1. Government of India. (2017). The Central Goods and Services Tax Act, 2017. 2. Government of India. (2017). The Integrated Goods and Services Tax Act, 2017. 3. GST Council Secretariat. Minutes and Recommendations of GST Council Meetings. 4. Goods and Services Tax Network (GSTN). GST Statistics and Settlement Reports. 5. Comptroller and Auditor General of India (CAG). Reports on Indirect Taxes and GST Administration. 6. Ministry of Finance, Government of India. Union Budget Documents. 7. Controller General of Accounts (CGA). Monthly Accounts of the Government of India. 8. Reserve Bank of India. State Finances: A Study of Budgets. 9. Fifteenth Finance Commission. Report for 2021–2026. 10. Central Board of Indirect Taxes and Customs (CBIC). Annual Reports. 11. GST Council. GST Revenue and IGST Settlement Reports. 12. Government of India. Integrated Goods and Services Tax Settlement Reports (2017–18 to 2025–26). (Official GST Portal data source.)
Publication Date
7/11/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
Funding Information
No funding information available for this research.
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