A Study on GST Revenue Efficiency in India: Sectoral and State-wise Comparative Analysis
P Rakshitha, MBA student, Faculty of Management Studies | CMS Business School | JAIN (Deemed-to-be University)
Srinivasan Arun Kumar, Assistant Professor, Faculty of Management Studies | CMS Business School | JAIN (Deemed-to-be University)
Abstract
The implementation of the Goods and Services Tax (GST) in India represents a major reform in the indirect tax system, replacing multiple taxes with a unified framework to enhance transparency, compliance, and revenue efficiency. This study examines GST revenue efficiency in India through a comparative analysis across selected sectors and states during 2017–2025, focusing on revenue trends, sectoral performance, inter-state variations, and key influencing factors.
A quantitative approach is adopted using secondary data from official government sources. Statistical tools including trend analysis, CAGR, linear regression, One-Way ANOVA, correlation, and multiple regression are applied. The analysis covers five major sectors manufacturing, services, trade, construction, and logistics and five leading states Maharashtra, Karnataka, Tamil Nadu, Gujarat, and Uttar Pradesh.
The results show a significant rise in GST revenue from ₹7.19 lakh crore in 2017–18 to ₹22.50 lakh crore in 2024- 25, with a CAGR of 17.7%, indicating strong growth and system stabilization. Manufacturing and services emerge as dominant contributors, while construction and logistics show lower efficiency. ANOVA results confirm significant differences across sectors and states, highlighting structural and regional disparities. Regression findings indicate that tax compliance and economic growth significantly influence GST efficiency. The study concludes that GST has evolved into an effective tax system in India, though disparities across sectors and states call for targeted policy interventions to improve overall efficiency.
Keywords: GST Revenue Efficiency, Sectoral Analysis, State-wise Comparison, Tax Compliance, Economic Growth
