State-wise Analysis of GST Revenue and IGST Settlement in India: Trends and Fiscal Implications

The implementation of the Goods and Services Tax (GST) in India on 1 July 2017 represents one of the most significant structural reforms in the country’s indirect taxation system. Prior to GST, the Indian tax framework consisted of multiple indirect taxes levied by both the central and state governments, such as excise duty, service tax, value added tax (VAT), and central sales tax. This fragmented system resulted in cascading taxation, administrative inefficiencies, and increased compliance burdens for businesses. GST was introduced to address these challenges by establishing a unified, destination-based tax system that integrates various indirect taxes into a single comprehensive framework.