Transformative Journey of GST in Karnataka – A comparative analysis of the past five years

Abstract

Goods and Service Tax (GST) is a successor to Value Added Tax. GST came into effect on 1^st July 2017 through the 101st Amendment of the Constitution. Goods and Service Tax (GST) is levied on the supply of goods and services. Goods and Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. GST is a single domestic indirect tax law for the entire country. GST is mainly technologically driven. All the activities like registration, return filing, application for refund and response to notice needs to be done online on the GST portal, which accelerates the processes. The implementation of GST in India aimed to create a unified and simplified tax regime, replacing multiple indirect taxes levied by the central and state governments. Karnataka, being one of the leading states in terms of economic and industrial growth, provided an interesting study to analyze the impact of GST. Through a comparative analysis of secondary data sources, including government reports, academic articles, and industry publications, this study explores the changes brought about by GST in Karnataka's taxation system and revenue generation. By synthesizing and interpreting existing data, this research provides insights into the effectiveness of GST in Karnataka and its contribution to the state's economic growth and development. This study revealed that central government revenue increased because of GST. But, when it comes to the question of Karnataka, compare to the initial days of introduction and recent years Karnataka’s revenue has increased.