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Stream/Area:
-
Subject:
-
Paper ID:
10.55041/IJSREM.GSTCOS034
Volume:
10 |
7 |
Jul 2026
Pages:
1-12
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.
Department of Commerce,
Satavahana University, Karimnagar
Department of Commerce,
Satavahana University, Karimnagar
The Goods and Services Tax (GST), introduced in India on 1 July 2017, represents one of the most important indirect tax reforms in the country’s economic history. The main objective of GST was to replace the complex multi-tax system with a unified taxation structure that promotes transparency, efficiency, and economic growth. This study examines the impact of GST on revenue performance and fiscal stability in India by analyzing the changes in tax collection patterns, revenue growth, and fiscal management after its implementation. The study is based on secondary data collected from government publications, GST Council reports, Reserve Bank of India reports, and Union Budget documents. The findings reveal that GST has contributed to widening the tax base, improving tax compliance, and increasing transparency through digital tax administration. The use of online filing systems, e-invoicing, and input tax credit mechanisms has reduced tax evasion and improved revenue monitoring. As a result, both central and state governments have experienced gradual improvement in revenue collections over the years. However, the study also identifies certain challenges such as technical issues during the initial implementation phase, revenue uncertainty, and dependence on compensation grants by states. Small and medium enterprises also faced operational difficulties in adapting to the new tax system. Despite these issues, GST has strengthened cooperative fiscal governance and created opportunities for long-term fiscal stability in India. The study concludes that continuous reforms and effective administration are necessary to achieve the full benefits of GST in enhancing revenue performance and maintaining fiscal balance.
KEYWORDS
The Goods and Services Tax (GST) has emerged as one of the most significant economic reforms in India’s taxation system. The study concludes that GST has played an important role in improving revenue performance and strengthening fiscal stability in the country. By replacing multiple indirect taxes with a unified tax structure, GST simplified the taxation process and reduced the cascading effect of taxes. The reform also improved transparency, accountability, and efficiency in tax administration. The findings of the study reveal that GST contributed to widening the tax base and increasing government revenue collections over time. The adoption of digital systems such as online return filing, e-invoicing, and e-way bills enhanced tax compliance and reduced tax evasion. As a result, both central and state governments experienced gradual improvement in revenue generation during the post-GST period. The growth in GST collections also supported better fiscal management and helped maintain financial stability. However, the study also identified certain challenges during the implementation phase, including technical problems, compliance burden on small businesses, and revenue uncertainty in some states. The COVID-19 pandemic further affected GST collections and fiscal balance temporarily. Despite these difficulties, the GST system showed resilience and recovered steadily due to continuous policy reforms and improved digital administration. The study concludes that GST has positively influenced India’s fiscal framework by strengthening revenue efficiency and promoting cooperative fiscal federalism. For achieving long-term fiscal sustainability, the government should continue simplifying GST procedures, improving digital infrastructure, and ensuring policy stability. Effective implementation and regular reforms will further enhance the benefits of GST and contribute to sustainable economic development in India.
1. Agarwal, A. (2018). GST and Economic Reforms in India. New Delhi: Taxmann Publications. 2. Aman, Q. (2023). GST Revenue Landscape in India: Assessing the Effects on Government Exchequer. VISION: Journal of Indian Taxation, 10(2), 40–54. (journalpressindia.com) 3. Bagchi, A. (2006). Towards GST: Choices and Trade-offs. Economic and Political Weekly, 41(14), 1314–1317. 4. Bhatia, R. (2023). Impact of E-Invoicing on GST Revenue Administration in India. International Journal of Commerce and Management Research, 9(2), 55–61. 5. Chakraborty, S., & Sen, P. (2024). Fiscal Stability and GST Revenue Trends in India. Journal of Public Finance and Policy, 12(1), 88–101. 6. Das, S. (2020). Digital Tax Administration and GST Compliance in India. Indian Journal of Finance, 14(7), 44–52. 7. Government of India. (2023). Economic Survey 2022–23. Ministry of Finance, New Delhi. 8. Government of India. (2024). Union Budget 2024–25. Ministry of Finance, New Delhi. 9. Gupta, R., & Singh, A. (2019). GST and Revenue Mobilization in India. International Journal of Research in Economics and Social Sciences, 9(4), 112–120. 10. Joseph, K. J., & Kumary, L. A. (2023). India’s GST Paradigm and the Trajectory of Fiscal Federalism. The Indian Economic Journal, 71(1), 187–203. (Sage Journals)
Publication Date
7/4/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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The authors declare no conflict of interest related to this research work.
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