After the implementation of GST, some states are likely to get affected as the nature of taxation is going to change and the states need to adopt the latest methodology in order to ensure proper generation of revenue under GST. read more
When it comes to the impact of GST on revenue of state governments, there comes a negative and positive both type of impact on State Government revenue. As for example, revenue from Value added tax was collection only for the State governments but after GST the VAT will be subsumed. read more
States will be compensated for any shortfall in revenue collection due to implementation of GST in the rst ve years. The baseline is assumed to be a growth of 14% compounded from 2015-16. On average, the growth in revenue from the subsumed taxes for these states grew 14% between 2010-11 and 2015-16. read more