Business Standard

State-level integration under GST shows modest gains in post-Covid period

This change in the design of the tax regime was argued to shift the revenue to consuming states from producing states

Assessing state integration under GST
Premium

Illustration: Binay Sinha

R Kavita Rao

Listen to This Article

The issue of inter-state variations in revenue performance is often a matter of debate. The change in the tax regime from the earlier value-added tax (VAT) to the goods and services tax (GST) marked a transition from a source-based tax to a destination-based tax for states. In the previous regime, inter-state transactions were taxed by the exporting state, whereas now, the revenues accrue to the destination state. This change in the design of the tax regime was argued to shift the revenue to consuming states from producing states. Further, with the introduction of GST, states are expected
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in