An Analysis of Contribution of GST in Economic Development and Revenue Mobilization in India
Author(s): 1. Amit Kumar, 2. Vikash Kumar Panadey
Authors Affiliations:
1. Research Scholar, Commerce, Shri Venkateshwara University, Gajraula Amroha (UP), India.
2. Assistant Professor, School of Commerce and management, Shri Venkateshwara University, Gajraula Amroha (UP), India.
DOIs:10.2015/IJIRMF/202605014 | Paper ID: IJIRMF202605014The introduction of the Goods and Services Tax (GST) represents one of the most comprehensive fiscal reforms in the Indian economy. Implemented with the vision of “One Nation, One Tax,” GST replaced the previously fragmented and multi-layered indirect tax system with a unified, destination-based taxation framework. By subsuming various central and state taxes into a single system, the reform aimed to simplify tax administration, enhance transparency, eliminate the cascading effect of taxes, and create a common national market. Furthermore, GST was designed to strengthen cooperative federalism through coordinated decision-making between the Centre and the States, while simultaneously improving revenue mobilization and tax compliance. Being one of the most comprehensive structural reforms since independence, GST is expected to significantly improve allocated efficiency, foster sustainable economic development, and strengthen long-term fiscal stability in the Indian economy.
In 2024–25, GST collections accounted for approximately 15% of total government revenue, highlighting its importance as a major source of indirect taxation and strengthening India’s fiscal capacity. Since its introduction, several significant changes have been made to the GST rate slabs to rationalize the tax structure, reduce complexities, and enhance overall efficiency and compliance in the taxation system, thereby influencing indirect tax revenue. The primary objective of this research paper is to assess the contribution of GST to India’s economic growth and fiscal performance. It also seeks to examine trends in GST collections and evaluate its share in total tax revenue to understand its role in enhancing revenue efficiency and fiscal stability.
1.Amit Kumar, 2.Dr. Vikash Kumar Pandey (2026); An Analysis of Contribution of GST in Economic Development and Revenue Mobilization in India, International Journal for Innovative Research in Multidisciplinary Field, ISSN(O): 2455-0620, Vol-12, Issue-5, Available on – https://www.ijirmf.com/
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