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Spurring fiscal equality: Ratio of GST to GSDP higher in poorer states

One aspiration for the GST system was that it would lead to regional development as it is a destination-based tax regime

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Indivjal Dhasmana New Delhi
The goods and services tax (GST) to gross state domestic product (GSDP) ratio has been higher in poorer states and this is resulting in fiscal equality.

Meanwhile, the GST mop up in May 2023 surpassed Rs. 1.5 trillion for the third month in a row. Also, it was the 15th consecutive month where GST revenue has been more than Rs. 1.4 trillion.

One aspiration for the GST system was that it would lead to regional development as it is a destination-based tax regime.

In the mid 1990s, an acronym BIMARU, coined by Ashish Bose, talked of low development in Bihar,

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First Published: Jun 28 2023 | 5:58 PM IST

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