GST implementation to curb state govts' autonomy on revenues: Study

States primarily depend on two sources for their revenue - their own revenue and central transfers

The implementation of the Goods & Services Tax (GST) is expected to curtail the state government's autonomy on their revenues. 

A report by Delhi-based non-profit organisation PRS Legislative Research notes that in the current financial year, transfers from the Centre are estimated to make 48 per cent of states’ revenue. With implementation of GST (tax rates decided by the GST Council), the autonomy of states is expected to reduce on an additional 17 per cent of their revenue. That is, the decision-making power of states will be limited to 35 per cent of their revenue.

States primarily depend on two