Whether States have the capacity to sustain projected growth in GST collection during the compensation period?
- Sacchidananda Mukherjee
- Jul 2019
- National Institute of Public Finance and Policy (NIPFP)
- India
Achieving harmonisation in design, structure and administration of taxes on goods and services was the major driving force behind the introduction of Goods and Services Tax (GST) in India. Revenue uncertainty associated with any tax reform is a major cause for concern for all governments. Unlike the Union government, States have limited taxation power (tax handles) to generate additional revenue to cope up with any major revenue shortfall on account of GST collection. Therefore the revenue protection enshrined under the GST Compensation Act has played an important role...
