How will GST impact state revenues?

The goods and service tax (GST) will be implemented soon. This is a value-added tax (VAT) system that subsumes a number of central and state taxes. How would GST impact state governments? We look at the finances of 12 large states. Does VAT improve revenue growth? In a VAT system, each person in the value chain gets input credit on the tax paid by the previous persons. This acts as an incentive to…