REGIONAL DYNAMICS AND STATE-LEVEL PERFORMANCE IN INDIA’S INDIRECT TAX SCENARIO: EXPLORING GOODS AND SERVICES TAX (GST) REVENUE JOURNEY

Gajanan BHARAT HALDANKAR

Assistant professor, Department of Commerce, VVM’s Shree Damodar college of Commerce & Economics, Goa, India

Gajanan.haldankar@vvm.edu.in.

(Corresponding author)

Santosh PATKAR

Professor & Principal, Sridora Caculo College of Commerce and Management Studies, Goa, India

patkar_santosh@rediffmail.com.

Abstract

Goods and Services tax was implemented in India from 2017 as a new indirect tax law intended to simplify and consolidate the previous tax system. India is a country with large population with diverse geographical regions, it becomes paramount for assessing the GST performance across different regions of the nation. For achieving the goal of the research secondary data of GST revenue from all 28 states and 8 union territories were collected and categorized into six regions. For the study Graph analysis, descriptive analysis, and Kruskal-Wallis tests were employed using Jamovi statistical software. The results of the study demonstrated the States/UTs that excel in terms of GST collection in their designated regions. In Northern region Haryana stands out, Assam leads the pack in Northeastern region, in central region Uttar Pradesh demonstrated a strong performance, in Eastern region West Bengal excels, Maharashtra performs well in the Western region and in Southern region the State of Karnataka is the best performer. These States demonstrated exceptional performance in collecting GST revenue within their regions. Additionally, the study revealed an upward trend in GST revenue performance across all regions of India particularly in Western region. However, it also indicates that certain States/UT’s & regions are not performing up to expectations when considering their population size. This research work gives a valuable perspective for the tax department, researchers and policymakers empowering them to develop strategies that can boost the region wise GST revenue collection and will help in promoting economic growth of the country.

Keywords: Indirect Tax, Goods and Services Tax (GST), Revenue performance, Region, India

JEL classification: H71, H20, H21

 pp. 39-53

read more

IS THERE A CAUSALITY RELATIONSHIP BETWEEN LOCAL TAX REVENUE AND REGIONAL ECONOMIC GROWTH? A PANEL DATA EVIDENCE FROM INDONESIA

Khairul AMRI

Lecturer at Faculty of Islamic Economics and Business, Universitas Islam Negeri (UIN) Ar-raniry, Banda Aceh, Indonesia

Email: khairul.amri@ar-raniry.ac.id

NAZAMUDDIN

Lecturer at Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia

Email: nazamuddin@unsyiah.ac.id

Raja MASBAR

Lecturer at Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia

Email: raja.masbar53@gmail.com

Hasdi AIMON

Lecturer at Faculty of Economics and Business, Universitas Negeri Padang, Padang, Indonesia

Email: s3dkpl@gmail.com

Abstract

The main objective of the study is to investigate the causal relationship of economic growth, local tax revenue, and local retribution revenue in Indonesia. A panel data set of 24 provinces over the period of 2003-2015, and then, Pedroni’s and Kao’s Co-integration test, Panel Vector Error Correction Model (PVECM) and Granger causality test were applied to analyze the relationship between the variables. The finding of the study indicates that in the long run, there would be a negative relationship between local tax revenue and regional economic growth and a positive and significant relationship between local tax revenue and local retribution revenue. Granger causality test proved that there is bi-directional causality between local tax revenues and economic growth, and uni-directional causality running from local retribution revenue to economic growth and local tax revenue.

Keywords: Local tax revenue, local retribution revenue, economic growth, and Panel Vector Error Correction Model

JEL classification: H71, O4
read more