AN EXAMINATION OF GST AND CENTRE-STATE FINANCIAL RELATIONS IN INDIA
Keywords:
GST, GST Council, Fiscal Federalism, Centre Government, State Government, Financial Relations, Cooperative Federalism
Abstract
Goods and Services Tax (GST) on 1 July 2017 is one of the big indirect tax reforms in the fiscal history of India. GST was conceived as a destination based consumption tax to subsume plethora of indirect taxes into a single seamless tax regime for enhanced tax efficiency, removal of cascading effect, convenience of doing business and development of a common national market. The reform has brought about a paradigm change in the Centre-State financial relations by providing concurrent taxing powers to the Centre and the States via a dual GST model comprising of CGST, SGST and IGST. It is a qualitative research which examines the changing character of fiscal federalism under GST system and changing dynamics of Centre-State financial interactions. The article discusses the constitutional and institutional reforms that have been introduced by the 101st Constitutional Amendment Act, 2016, especially the creation of the GST Council as a tool of cooperative federalism and intergovernmental fiscal coordination.
Downloads
Download data is not yet available.
References
1. Bagchi Amaresh (2006), Towards GST: Choices or trade-offs , Economic & Political Weekly, 41(14)
2. Bird, Richard and Pierre-Pascal Gendron (2007), Value Added Taxes in Developing and Transitional Countries, (Cambridge and New York), Cambridge University Press
3. Bird, Richard (2012), The GST/HST: Creating an Integrated Sales Tax in a Federal Country , The School of Public Policy Research Papers, Vol. 5; Issue 2
4. Bhaskar V & J V M Sarma (2012), A Road Map for Implementing the Goods and Services Tax , Economic and Political Weekly
5. Bhaskar V (2019), GST Revenue Conceals More than It Reveals. Business Standard, March 6
6. Chandrasekhar, C. P., & Ghosh, J. (2021). Wrecking fiscal federalism. https://mail.macroscan.net/fet/jan21/pdf/Fiscal_Federalism.pdf
7. Chakraborty S. (2018), A study on impact of Goods and Services Tax on Indian textile industry, Research Review International Journal of Multidisciplinary, vol. 3, no. 11, pp. 86-91.
8. Charan P., Benjamin R., Khan Z. H.(2016), Goods and Services Tax (GST) Bill’2016: Gearing up for the next big wave in the Indian Economy, International Journal of Scientific & Engineering Research, vol. 8, no. 1,
9. Das Surajit (2017), Some concepts regarding the Goods and Services tax , Economic and Political Weekly, Vol. 52, No 9
10. GST Council (2020), Concept & Status, Central Board Taxes & Customs, Department of Revenue, Ministry of Finance, Government of India
11. Goods and Services Tax Council. (2020). https://gstcouncil.gov.in/about-us-archive
12. GST Council(2020), GST Council Meetings- Minutes of the meeting, Central Board Taxes & Customs, Department of Revenue, Ministry of Finance, Government of India
13. Keen, Michael and Ben Lockwood (2010), The Value Added Tax: Its Causes and Consequences, Journal of Development Economics, Vol. 92.
14. Khoja I. A & Khan N. A. (2020), Goods and services tax, cascading, and revenue performance: Analysing Indian commodity taxation market, Journal of Public Affairs, vol. 20, no. 3, pp. 1-11.
15. Ministry of Finance, Government of India: Five Years of GST
16. Ministry of statistics and programme implementation, 2021
17. Mukherjee S. (2015), Present state of goods and services tax (GST) reform in India (TTPI Working Paper 6/2015), Tax and Transfer Policy Institute, 2015.
18. Mukherjee S. & Rao Kavita (2019), Fiscal Implications of Introduction of Goods and Services Tax in India , Report Submitted to the Fifteenth Finance Commission (FC-XV) 2019
19. Mukherjee S (2020), Intergovernmental Fiscal Transfers in the Presence of Revenue Uncertainty: The Case of Goods and Services Tax (GST) in India ,Journal of Development Policy and Practice 5(1) 74–102
20. Mukherjee S. (2020), Goods and Services Tax efficiency across Indian States: Panel stochastic frontier analysis, Indian Economic Review, vol. 55, no. 2, pp. 225-251, 2020.
21. Mukherjee S.(2020), Pandemic and GST Revenue: An Assessment for Union and States (NIPFP Working Paper No. 327), National Institute of Public Finance and Policy, 2020.https://www.nipfp.org.in/media/medialibrary/2020/01/WP_327_2020.pdf
22. Mukherjee S. (2020), Possible impact of withdrawal of GST compensation post GST compensation period on Indian state finances (NIPFP Working Paper No. 291), National Institute of Public Finance and Policy,
23. Pandey M.(2017), Impact of goods and service tax (GST) on Indian tax structure, International Research Journal of Management, IT and social sciences, vol. 4, no. 3, pp. 22-33
24. Pandey Ritvik Ranjan (2017) Cooperative federalism and GST , Aarthika Charche FPI Journal of Economics and Governance Vol 2 no 1 Jan-June 2017
25. Pandey Sumedha (2021), Changing Paradigm of Centre State Financial Relations in India With Special Reference to GST Good and Services Tax, University of Allahabad
26. Pandey Sumedha (2020). 3 Years of GST Implementation in India: A State-Level Performance Analysis. Quest Journals Journal of Research in Humanities and Social Science, vol. 08(10), 2020, pp. 41-51.
27. Patnaik Prabhat (2016), A blow against federalism: The Implications of a Uniform Goods and Services Tax, Telegraph, 28 Jun
28. Poddar & Ahmad (2009), GST Reforms and Intergovernmental Considerations in India Working Paper No.1/2009-DEA, Department of Economic Affairs, Ministry of Finance, Government of India,
29. Purohit M. C. & Purohit V. K. (2010), Goods and services tax in India: An empirical analysis of revenue implications, The Indian Economic Journal, vol. 58, no. 1, pp. 33-59. DOI: 10.1177/0019466220100104
30. Rao, M. Govinda and Rao Kavita (2005), Trends and Issues in Tax Policy and Reforms in India, India Policy Forum
31. Rao Kavita (2022) GST, End of Compensation Regime and Stress on State Finances , NIPFP Working paper No. 376 23-March-2022
32. Rao MG (2019), Goods and Services Tax in India:Progress,Performance & Prospects Working Paper No. 2019-02,COLUMBIA,SIPA
33. Rao M. G. (2009), Goods and Services Tax: Some Progress towards Clarity, Economic and Political Weekly, vol. 44, no. 51, pp. 8-11.
34. Rao M. G. (2011), Goods and Services Tax: A Gorilla, Chimpanzee or a Genus like ‘primates’? Economic and Political Weekly, vol. 46, no. 7, pp. 43-48.
35. Reddy, Y. V and G R. Reddy (2018), Indian Fiscal Federalism, New Delhi: Oxford University Press, 2018
36. Report of the Expert Group on taxation of services, Ministry of Finance, Government of India, 2001
37. Report of the Task Force on Indirect Taxes, Ministry of Finance, Government of India, 2003.
38. Report on the Revenue Neutral Rate and Structure of Rates for the Goods and Services Tax (GST), 2015 (Chairman: Arvind Subramanian).
39. Sharma, Chanchal Kumar (2021) : The political economy of India's transition to Goods and Services Tax, GIGA Working Papers, No. 325, German Institute of Global and Area Studies (GIGA), Hamburg
40. Singh, N K (2019), Speech of Shri N.K. Singh, Chairman, XVFC at the launch of the book ‘Indian Fiscal Federalism’ , PIB, March 28th 2019, Government of India
2. Bird, Richard and Pierre-Pascal Gendron (2007), Value Added Taxes in Developing and Transitional Countries, (Cambridge and New York), Cambridge University Press
3. Bird, Richard (2012), The GST/HST: Creating an Integrated Sales Tax in a Federal Country , The School of Public Policy Research Papers, Vol. 5; Issue 2
4. Bhaskar V & J V M Sarma (2012), A Road Map for Implementing the Goods and Services Tax , Economic and Political Weekly
5. Bhaskar V (2019), GST Revenue Conceals More than It Reveals. Business Standard, March 6
6. Chandrasekhar, C. P., & Ghosh, J. (2021). Wrecking fiscal federalism. https://mail.macroscan.net/fet/jan21/pdf/Fiscal_Federalism.pdf
7. Chakraborty S. (2018), A study on impact of Goods and Services Tax on Indian textile industry, Research Review International Journal of Multidisciplinary, vol. 3, no. 11, pp. 86-91.
8. Charan P., Benjamin R., Khan Z. H.(2016), Goods and Services Tax (GST) Bill’2016: Gearing up for the next big wave in the Indian Economy, International Journal of Scientific & Engineering Research, vol. 8, no. 1,
9. Das Surajit (2017), Some concepts regarding the Goods and Services tax , Economic and Political Weekly, Vol. 52, No 9
10. GST Council (2020), Concept & Status, Central Board Taxes & Customs, Department of Revenue, Ministry of Finance, Government of India
11. Goods and Services Tax Council. (2020). https://gstcouncil.gov.in/about-us-archive
12. GST Council(2020), GST Council Meetings- Minutes of the meeting, Central Board Taxes & Customs, Department of Revenue, Ministry of Finance, Government of India
13. Keen, Michael and Ben Lockwood (2010), The Value Added Tax: Its Causes and Consequences, Journal of Development Economics, Vol. 92.
14. Khoja I. A & Khan N. A. (2020), Goods and services tax, cascading, and revenue performance: Analysing Indian commodity taxation market, Journal of Public Affairs, vol. 20, no. 3, pp. 1-11.
15. Ministry of Finance, Government of India: Five Years of GST
16. Ministry of statistics and programme implementation, 2021
17. Mukherjee S. (2015), Present state of goods and services tax (GST) reform in India (TTPI Working Paper 6/2015), Tax and Transfer Policy Institute, 2015.
18. Mukherjee S. & Rao Kavita (2019), Fiscal Implications of Introduction of Goods and Services Tax in India , Report Submitted to the Fifteenth Finance Commission (FC-XV) 2019
19. Mukherjee S (2020), Intergovernmental Fiscal Transfers in the Presence of Revenue Uncertainty: The Case of Goods and Services Tax (GST) in India ,Journal of Development Policy and Practice 5(1) 74–102
20. Mukherjee S. (2020), Goods and Services Tax efficiency across Indian States: Panel stochastic frontier analysis, Indian Economic Review, vol. 55, no. 2, pp. 225-251, 2020.
21. Mukherjee S.(2020), Pandemic and GST Revenue: An Assessment for Union and States (NIPFP Working Paper No. 327), National Institute of Public Finance and Policy, 2020.https://www.nipfp.org.in/media/medialibrary/2020/01/WP_327_2020.pdf
22. Mukherjee S. (2020), Possible impact of withdrawal of GST compensation post GST compensation period on Indian state finances (NIPFP Working Paper No. 291), National Institute of Public Finance and Policy,
23. Pandey M.(2017), Impact of goods and service tax (GST) on Indian tax structure, International Research Journal of Management, IT and social sciences, vol. 4, no. 3, pp. 22-33
24. Pandey Ritvik Ranjan (2017) Cooperative federalism and GST , Aarthika Charche FPI Journal of Economics and Governance Vol 2 no 1 Jan-June 2017
25. Pandey Sumedha (2021), Changing Paradigm of Centre State Financial Relations in India With Special Reference to GST Good and Services Tax, University of Allahabad
26. Pandey Sumedha (2020). 3 Years of GST Implementation in India: A State-Level Performance Analysis. Quest Journals Journal of Research in Humanities and Social Science, vol. 08(10), 2020, pp. 41-51.
27. Patnaik Prabhat (2016), A blow against federalism: The Implications of a Uniform Goods and Services Tax, Telegraph, 28 Jun
28. Poddar & Ahmad (2009), GST Reforms and Intergovernmental Considerations in India Working Paper No.1/2009-DEA, Department of Economic Affairs, Ministry of Finance, Government of India,
29. Purohit M. C. & Purohit V. K. (2010), Goods and services tax in India: An empirical analysis of revenue implications, The Indian Economic Journal, vol. 58, no. 1, pp. 33-59. DOI: 10.1177/0019466220100104
30. Rao, M. Govinda and Rao Kavita (2005), Trends and Issues in Tax Policy and Reforms in India, India Policy Forum
31. Rao Kavita (2022) GST, End of Compensation Regime and Stress on State Finances , NIPFP Working paper No. 376 23-March-2022
32. Rao MG (2019), Goods and Services Tax in India:Progress,Performance & Prospects Working Paper No. 2019-02,COLUMBIA,SIPA
33. Rao M. G. (2009), Goods and Services Tax: Some Progress towards Clarity, Economic and Political Weekly, vol. 44, no. 51, pp. 8-11.
34. Rao M. G. (2011), Goods and Services Tax: A Gorilla, Chimpanzee or a Genus like ‘primates’? Economic and Political Weekly, vol. 46, no. 7, pp. 43-48.
35. Reddy, Y. V and G R. Reddy (2018), Indian Fiscal Federalism, New Delhi: Oxford University Press, 2018
36. Report of the Expert Group on taxation of services, Ministry of Finance, Government of India, 2001
37. Report of the Task Force on Indirect Taxes, Ministry of Finance, Government of India, 2003.
38. Report on the Revenue Neutral Rate and Structure of Rates for the Goods and Services Tax (GST), 2015 (Chairman: Arvind Subramanian).
39. Sharma, Chanchal Kumar (2021) : The political economy of India's transition to Goods and Services Tax, GIGA Working Papers, No. 325, German Institute of Global and Area Studies (GIGA), Hamburg
40. Singh, N K (2019), Speech of Shri N.K. Singh, Chairman, XVFC at the launch of the book ‘Indian Fiscal Federalism’ , PIB, March 28th 2019, Government of India
Published
2022-12-19
How to Cite
Iti Dandona, & Dr Praveen Tomar. (2022). AN EXAMINATION OF GST AND CENTRE-STATE FINANCIAL RELATIONS IN INDIA. IJRDO - Journal of Business Management, 8(12), 60-65. https://doi.org/10.69980/bm.v8i12.6692
Section
Articles
This work is licensed under a Creative Commons Attribution 4.0 International License.
By submitting a manuscript to IJRDO – Journal of Business Management, the author(s) confirm that the work is original and does not infringe upon any existing copyrights or third-party rights.
Authors retain responsibility for the content of their work. In cases of proven ethical misconduct such as plagiarism or duplicate publication, the journal reserves the right to take appropriate action, which may include correction or retraction, in accordance with publication ethics.
