An Analysis on State-wise GST Collections and Refunds

The Goods and Services Tax (GST) was introduced in India to replace multiple central and state taxes with a unified indirect tax system. Its implementation brought significant changes to the country’s taxation structure by improving transparency, simplifying the tax process, and strengthening coordination between the central and state governments. This study examines the state-wise performance of GST collections and refund disbursements in India from 2020 to November 2025 in order to understand revenue trends and fiscal patterns across different states. The research analyses the contribution of the major GST components such as Central GST (CGST), State GST (SGST), Integrated GST (IGST), and Compensation Cess (CESS) to overall GST revenue. It also focuses on identifying trends in GST collections, comparing the performance of different states, and examining the relationship between GST collections and refund disbursements. The study is based on secondary data collected from reliable sources including government reports, the GST portal, and published research articles and journals. The data has been analysed using descriptive statistics, trend analysis, correlation analysis, and regression techniques. The findings show a positive relationship between GST collections and refund disbursements across states. States with higher economic activity, industrial development, and larger taxable turnover tend to report higher GST collections as well as higher refund claims due to the input tax credit mechanism under the GST system. In contrast, states with relatively lower economic activity record lower collections and refunds. The study highlights that analysing both GST collections and refunds is important for understanding the actual revenue position and fiscal performance of states under the GST system, while also providing insights into regional variations in tax revenue across India