GST Impact on State Revenues with Special Reference to Karnataka

GST stands for Goods and Services Tax, a comprehensive, multi-stage, destination-based indirect tax imposed on the supply of goods and services. GST is introduced in the year 2017 on July 1 in India. The objective of the study is to know the GST Revenue Collection of South Indian States of last 8 years as well as GST Impact on State Revenues with special reference to Karnataka. The study includes secondary data which is collected from Government Websites. The Study covers a span of 8 years after the implementation of GST in India. Growth rates were calculated and analyzed with the help of statistical tools like Average etc. Among the South Indian states GST Revenue collection is more in the state of Maharashtra with an Average of ? 2,24,376 Crores in last 8 years. (Rank 1). Karnataka places Rank 2 (Average of ? 1,01,193 crores). Among the average of 8 years Total Tax Revenue (? 1,28,690 crores) of the Karnataka Govt, Commercial taxes including GST constitute major portion of ? 76,338 crores (59%). The average GST growth rate is more (13.49%) compared to other taxes. Karnataka Govt need to take necessary action in this regard to increase its GST revenue through a greater number of GST registration and offering more concessions to the existing registered dealers.