IMPACT OF GST ON VARIOUS STATES: A COMPARATIVE STUDY

Abstract

The Goods and Services Tax (GST) is one of the biggest tax reforms in India, which aimed at unifying the country's complicated and fragmented taxation system into one framework. This study assesses the impact of GST on different Indian states between 2018 and 2024, focusing on the trends in tax collections and the implications for state economies. By analyzing GST revenue data and comparing it with state GDP figures, the research highlights key patterns, disparities, and challenges in implementing GST across diverse regions. The findings reveal a clear divide in GST performance between industrialized states like Maharashtra, Karnataka, and Tamil Nadu, which consistently contribute high revenues, and smaller states and union territories, such as Mizoram and Manipur, where collections remain modest. The high industrialized states are known to enjoy the benefits of strong manufacturing and service sectors, whereas less-industrialized states have a hard time due to fewer economic activities and logistic issues. The study further identified the COVID-19 pandemic as a critical factor that temporarily disrupted GST collections though most states showed strong recovery post-2021.