This study explores how digitalization has influenced direct and indirect tax collection in India. Over the past few years, the Government of India has introduced several digital initiatives such as GST, e-filing systems, and digital payment platforms to modernize the taxation system. These reforms have played a significant role in making tax administration more efficient, transparent, and accessible. The study is based on secondary data collected from government reports, official publications, and academic sources. The findings suggest that digitalization has helped reduce manual errors, curb tax evasion, widen the tax base, and enable real-time tracking of financial transactions. It has also simplified the tax filing process, making it quicker and more convenient for taxpayers. At the same time, certain challenges still remain. Issues like technical glitches, cybersecurity concerns, lack of digital literacy, and inadequate infrastructure can limit the full potential of digital systems. Overall, the study concludes that digitalization has brought a positive transformation in India’s taxation system and has supported economic growth. However, continued efforts in improving infrastructure, spreading awareness, and strengthening policies are necessary to make the system more effective. Keywords: Digitalization, GST, E-filing, Tax Compliance, Direct Tax, Indirect Tax, Revenue Collection, Transparency, India.

The article summarizes the results of research on the historical formation processes of direct and indirect taxation, direct and indirect taxation reforms and effective results implemented during the past period of independence to optimize the tax system. The study highlights the processes of direct and indirect taxation, the composition of taxpayers, the object of taxation, the tax base, the tax rate, and the optimization of tax calculation and payment mechanisms to the budget.

The Goods and Services Tax (GST) in India, implemented on 1st July 2017, is one of the most significant indirect tax reforms since Independence. It subsumed several existing taxes levied by the central and state governments. The simplified tax system is expected to boost the revenues of both the union and state governments on account of increased compliance. The states have surrendered more taxing powers than the Centre, thus raising concerns about the revenue autonomy of states. Sustaining the revenue stream, which is subsumed into GST, is essential for sustainable Public Finance Management (PFM) for states (Mukherjee, 2023). Hence, the GST (Compensation to States) Act was enacted to address concerns about declining revenue in 2017. Since the implementation of the GST reform, several concerns have been raised with respect to revenue neutrality, loss of states’ revenue and suffering of producing states as the GST is a destination-based tax. Since six years have passed and it has been more than a year since GST compensation ended, a comprehensive analysis of GST revenue performance at the state level assumes much importance. In this context, this study seeks to address three questions. One, how have states performed with respect to the GST growth performance after its implementation compared to the pre-GST period? Two, whether the GST reform enhanced the tax revenues of states in India? Three, whether GST affected producer states negatively while benefitting the consuming states? This study uses state-level GST data, which is derived by combining the revenue collection through SGST and IGST settlement from 2017-18 to 2022-23. Further, we use the GST revenue collected estimated through taxes subsumed under the GST period to GST from 2012-13. Our analysis is restricted to eighteen general category states. We use the data on GSDP, per-capita GSDP and sectoral shares published by the MOSPI. The time period of our analysis is from 2012-13 to 2022-23. We analyse the GST revenue performance through three main indicators. One, GST as a percentage of GSDP; two, GST as a percentage of states’ own tax revenue; and three, the growth of GST revenues. We also analyse the intensity of the impact on states at the end of the GST compensation era. Our analysis throws light on the fact that, even though the states recorded higher tax revenues in absolute terms in the GST regime, it is dismaying to note that no states have improved their tax-to-GDP ratio during this period. Therefore, the increased growth rate in tax revenue could be attributed to other economic factors, especially the rebound of the economy after the downfall of the COVID-19 pandemic. Some states like Gujrat, which were lagging in the pre-GST regime, were able to emerge as the top performers in many aspects of the GST. Many states that have performed better in the pre-GST regime have also come down in the GST regime. This necessitates further improvement in the country's tax governance. Besides this, the majority of states’ tax buoyancy has decreased after implementing GST. Apart from all these, the actual GST collection by the states is far below the expected revenue. In tandem, these factors lead to increasing fiscal stress on the states on account of the implementation of GST in India.

The introduction of the Goods and Services Tax (GST) in India on July 1, 2017 marked a landmark tax reform that consolidated multiple indirect taxes into a single unified system. This study investigates the impact of GST on the financial management practices of Micro, Small, and Medium Enterprises (MSMEs) in the Pune region, focusing on key dimensions including working capital management, cash flow, compliance costs, profitability, and accounting practices. Employing a descriptive research design, primary data were collected through structured questionnaires from 150 MSME owners and managers using convenience sampling. Statistical analyses—including Chi-square and paired t-tests—were applied to test research hypotheses. Findings reveal that while GST has significantly improved business transparency and encouraged digital record-keeping, it has also substantially increased compliance burdens, operational costs, and working capital requirements for the majority of respondents. The Chi-square test (χ² = 60.84, p < 0.001) confirmed a significant association between GST compliance and MSME profitability. The paired t-test (t = 4.487, p < 0.001) confirmed that GST has significantly increased working capital requirements. Despite short-term financial pressure, most MSMEs express a positive long-term outlook toward GST. The study recommends simplification of GST procedures, improved digital infrastructure, and targeted training programs to help MSMEs maximise the benefits of the unified tax regime. Keywords— GST; MSME; Financial Management; Working Capital; Tax Compliance; Input Tax Credit

The fast-moving consumer goods are our important contributors to both direct and indirect tax. When we investigate the GDP contribution, FMCG is an important player. Goods and Service Tax which subsumed most of the indirect taxes in the country would have a significant impact on the fast-moving consumer goods sector. This research paper being quantitative research uses data relating to ten FMCG companies to analyze the impact of GST on the companies in the FMCG sector. The main objective of the paper is to know how GST has impacted the companies in the FMCG sector. During analysis, we got to know that it aims at simpler tax regime and transparency in all transaction. It seems that it is beneficial to these companies. The fast-moving consumer goods (FMCG) segment is the fourth largest sector in the Indian economy. The market size of FMCG in India is estimated to grow from US$ 30 billion in 2011 to US$ 74 billion in 2018. Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the sector. The sector is likely to see a significant impact once the Goods and Services Tax (GST) Bill is passed as the companies set up warehouses across the states in a bid to have a more tax efficient system. Even from the fast-moving consumer goods (FMCG) industry, the sheer efficiency of goods and services tax (GST), if the design is such that the credits do not stick to the business and are passed on in the value chain, there will be benefits even from an efficiency perspective for a FMCG industry. The second fact is the fact that FMCG industry today has a network design which is also entirely driven by the concept of stock transfers and then sale through depots. As GST is replacing various indirect taxes used to be levied by central and state government, it has an impact on all most all the sectors of Indian economy. FMCG is one such sector directly having its impact on large public. It is very important to study the possible positive and negative impact of GST implementation on FMCG sector. Hence, the study covers possible impact of GST in FMCG sector. It also explains the perspective positives and negatives of GST implementation to FMCG sector. The study further covers the effectiveness of GST in FMCG sector in the countries already implemented it.

The introduction of Goods and Services Tax (GST) on 1 July 2017 marked a major shift in India’s indirect tax system. Before GST, businesses faced a confusing mix of central taxes (like excise duty and service tax) and state levies (VAT, entry tax, octroi, and various cesses). These overlapping taxes caused cascading costs, border delays, and administrative headaches, ultimately raising prices for everyone. GST replaced this fragmented setup with a single, destination-based consumption tax that applies uniformly across the country. The goal was simpler compliance, reduced cascading, and a truly integrated national market. A standout feature is the GST Council, where the Centre and states jointly decide rates, exemptions, and rules. This cooperative approach has strengthened federal coordination in taxation. Since rollout, GST has brought greater transparency and efficiency. The GST Network (GSTN) enables online filings, invoice matching, and better tracking, pulling many informal businesses into the formal economy. Removing state border checkpoints has sped up goods movement and lowered logistics costs. Revenue trends have been encouraging overall. Using principles from public finance theory alongside empirical revenue trends and institutional evaluation, the paper assesses whether GST has strengthened revenue generation, enhanced fiscal responsiveness, and contributed to long-term financial sustainability at the state level. Nationally, collections have grown steadily with a wider tax base, even after some rate rationalisations. For Uttar Pradesh, a large and diverse state, GST has supported rising own-tax revenue, reduced dependence on central transfers, and driven a surge in registrations often topping the country in new enrolments in recent months. Monthly collections frequently rank among the highest, reflecting stronger economic formalisation and activity. Still, challenges persist. Small businesses in UP and elsewhere find compliance burdensome monthly filings, tech requirements, and complex rules hit micro-enterprises hard. Early portal glitches frustrated users, and debates over revenue sharing and state fiscal autonomy continue. Overall, GST has created a more streamlined, transparent, and integrated indirect tax framework. It has boosted revenue mobilisation, eased inter-state trade, and laid the foundation for a national common market. For Uttar Pradesh, it has contributed to better fiscal performance and economic formalisation. Long-term success, however, depends on simplifying processes for small players, improving technology, and maintaining strong Centre-state cooperation.

This article examines VAT, digital transaction taxes and climate-related charges, highlighting their interaction in an economy shaped by digitalization and decarbonization under fragmented rules. It argues that these indirect taxes should move to the centre of international tax debate, and be coordinated systematically rather than treated in silos, within a multilateral framework that is UN-led and OECD-informed.

The study is conducted to explore the short run dynamics and long run relationship between Direct Tax, Indirect Tax and Economic Growth of India taking Gross Fixed Capital Formation and Trade Openness as control variables. Taking time series secondary data of last five decades Vector Error Correction Model (VECM) has been employed because all the variables are integrated of same order, further Johansen Co-integration test reveals long run equilibrium relationship among the variables. In the long run relationship, Direct Tax, Indirect Tax and Trade Openness have positive relationship while Gross Fixed Capital Formation reveals negative relationship with Economic Growth of India. In the short run Indirect Tax acts as a stabilizer to correct short run deviation in order to maintain the long run equilibrium. The findings of this paper may be reliable for policy implication because the econometric model VECM has passed all the diagnostic tests

ABSTRACT The Goods and Services Tax (GST), implemented in India on July 1, 2017, represents one of the most significant tax reforms since India's independence, subsuming over 17 central and state indirect taxes into a unified, destination-based taxation system. Micro, Small and Medium Enterprises (MSMEs), which collectively contribute approximately 30% to India's GDP, employ over 110 million people, and account for 40–45% of total exports, have been profoundly affected by this transformation. This study analyses the impact of GST on the financial performance of MSMEs in India over the period 2021–2025, using secondary financial data from five representative MSME companies. Employing trend analysis, common size analysis, comparative analysis, and profit and loss analysis, the study evaluates key financial parameters, including profitability, liquidity, cost structure, working capital management, and compliance costs. The findings reveal that while GST has imposed significant short-term compliance burdens—particularly on smaller enterprises—its long-term net financial impact is positive, with most companies demonstrating improved profitability, reduced debt, expanding asset bases, and stronger internal reserves. The study identifies digital adoption and efficient working capital management as key differentiators of GST performance outcomes and concludes with policy recommendations for the government and strategic suggestions for MSME owners to maximise the benefits of the GST regime. Keywords: GST, MSMEs, Financial Performance, Input Tax Credit, Compliance Costs, Profitability, Working Capital, India

Can carbon tax designs gain public support?: Evidence from a CVM-DCE study in South Korea.

The national economic security nowadays faces significant challenges, e.g. the increasing debt burden, structural imbalances of the tax system, and the reliance of the budget on external financing sources. Fiscal regulation is a key instrument for shaping financial resilience and macroeconomic stability, which makes a study of its impact on economic security highly relevant. The purpose of the article is to highlight the impact of fiscal regulation on the national economic security based on the analysis of the dynamics of key fiscal indicators, and to outline the main trends shaping the financial stability of the state. Fiscal regulation in the context of economic security is defined as a system of government measures aimed at maintaining financial stability, reducing debt and macroeconomic risks, and creating predictable conditions for the sustainable economic development. A comprehensive analysis of Ukraine's fiscal indicators (tax, budgetary, and debt-related) over 2018-2025 has been carried out from the standpoint of the national economic security. An approach is proposed for assessing the impact of fiscal regulation on the sustainability of public finances in the long term, allowing the identification of key risks and imbalances. An analysis of the fiscal indicators over the period in question showed a significant deterioration in Ukraine's economic security. The primary balance of the state budget became negative, with the debt burden growing at a rapid pace, and expenditures on debt servicing nearly tripled compared to 2018. The share of budget financing from foreign sources exceeded 80-95%, thus increasing the country's external dependence. The structure of tax revenues was shifting toward indirect taxes, increasing the tax burden on households and businesses. At the same time, the subsidization of the Pension Fund of Ukraine was gradually decreasing, indicating some improvements in the social security. The overall assessment shows that the national economic security in Ukraine remains poor and continues to worsen. To enhance the economic security, measures are needed to strengthen the internal revenue base of the budget, optimize expenditures, gradually reduce debt dependence, and develop a more balanced tax system.

The implementation of the Goods and Services Tax (GST) in India represents a significant structural reform aimed at simplifying the indirect tax regime and promoting economic integration. This study examines the impact of GST on business operations, tax compliance, and trade competitiveness among Small and Medium Enterprises (SMEs) in Bangalore, Karnataka. A quantitative research design was adopted, and primary data were collected from 192 SMEs using a structured questionnaire. Statistical tools such as descriptive statistics, correlation, regression analysis, and ANOVA were employed to analyze the data. The findings reveal that GST has significantly enhanced tax compliance while moderately improving operational efficiency and trade competitiveness. However, the compliance burden and technological challenges continue to hinder SME performance. The study offers policy recommendations to improve GST implementation and support SME growth.

The Value Added Tax (VAT) is a cornerstone of South Korea’s tax system, serving as a critical indirect tax that ensures stable revenue collection and economic neutrality. However, South Korea’s VAT system faces several challenges, including a complex tax rate structure, excessive administrative burdens on small businesses, regressive impacts on low-income households, opportunities for tax evasion and avoidance, and inadequate responses to the global digital economy. These issues undermine the fairness and efficiency of the tax system, exacerbate economic inequality, and contribute to revenue leakage. This paper systematically analyzes the structural and operational shortcomings of South Korea’s VAT system and proposes short-term and long-term strategies for improvement.

In 2017, the introduction of the Goods and Services Tax (GST) marked a significant restructuring of India’s indirect tax regime, based on the principle of “One Nation, One Tax”. GST has been widely discussed in terms of macroeconomic efficiency, market restructuring, etc., but its implications for socio-cultural aspects, particularly within indigenous and tribal societies, remain underexplored. In many tribal communities of Northeast India, particularly within the Singpho community, bride price is not merely a financial transaction but a ritual exchange embedded within kinship, social protection, and reciprocity. Bride price among the Singphos has traditionally included livestock, ornaments, oxen, buffalo, and other culturally significant products, many of which are being purchased through official markets rather than subsistence farming. With the introduction of GST, these things join a uniform tax framework, increasing their market value and hastening their transformation from ceremonial objects to taxable commodities. The study investigates how GST, as a tax reform, indirectly alters traditional marriage economies by facilitating the monetization and commercialization of bride-price systems. It also posits that this transformation leads to the progressive monetary conversion of bride price, shifting from a system based on symbolic exchanges to one that demands cash. For tribal households facing economic hardships, rising marriage costs may lead to borrowing, delayed marriages, cutbacks in ritual elements, or alterations in customary practices.

India as fiscal landscape underwent a transformative reform with the introduction of the Goods and Services Tax (GST) on 1 July 2017, replacing a complex, multi-layered indirect tax structure. GST was envisioned as a unifying mechanism to dismantle economic barriers across states and integrate India into a single, cohesive national market. Karnataka, one of India?s leading industrial and entrepreneurial states, is home to a dynamic MSME sector that plays a pivotal role in employment generation, export diversification, and regional economic growth. The present study examines the perception, awareness, acceptance, and impact of GST on Micro, Small, and Medium Enterprises (MSMEs) in Karnataka, with a focus on enterprises located in Bengaluru, Mysuru, Belagavi, Hubli-Dharwad, and Mangaluru. A structured questionnaire-based survey was administered to 150 MSME owner-managers. Descriptive statistics, Chi-Square tests, and Pearson correlation analysis were employed to evaluate the hypotheses. The findings reveal a statistically significant association between the category of enterprise and its perception of GST legislation. The study further establishes that higher GST awareness correlates positively with satisfaction levels. While MSMEs broadly accept GST as a progressive reform, compliance burden and technological challenges remain significant concerns. The study contributes to the growing body of literature on tax reform and MSME development, offering actionable policy implications for regulators and business support agencies in Karnataka.

With effect from 1 July 2017, a composite dual Goods and Services Tax (GST) has replaced the complex multiple indirect tax structure. This is the major tax reform so far in India. The main objective of GST in India is to eliminate the diversity, flow effect and middle tax problem of ancillary taxes, which can be accomplished only by imposing GST. Purpose of the study what impact of GST on MSME sector. It has to be studied and also to find out whether GST is really beneficial or harmful. The study showed that GST has had a significant impact on the MSME sector. The tax rate has come down in some places and in some places it has up. According to goods and service tax council and the following study, it has been found that overall GST has proved beneficial for the customer and MSME industry

ABSTRACT On 1 July 2017, India introduced the GST to reform its indirect tax system. In this paper, we analyse the ‘grand bargain’ for compensation between the states and the central government to bring states on board for tax reforms, and explore the factors behind inter-state variations in the GST revenue shortfall. The paper argues that instead of an all-state uniform revenue protection for the entire transition period, a glide path of the declining level of revenue protection with state-specific revenue benchmark should be preferred while designing compensation schemes accompanying tax reforms. Further, the revenue-losses of net-producing states under GST are structural and likely to last beyond the transition period. Addressing their concerns, possibly through intergovernmental transfers, would instil fiscal trust among states for future reforms. We also show that, by broadening the subnational tax base to include services, the implementation of the GST may enhance the buoyancy of state tax revenues in the long run.

In recent years, India, one of the world’s largest economies, has experienced the most significant tax reforms with the introduction of the Goods and Services Tax (GST). Since its implementation, the research on this indirect tax has been evolving over time. This paper aims to provide a systematic review of GST-related research since its inception and to identify potential avenues for the future research. For ensuring a rigorous and transparent review process, the PRISMA protocol was employed to scientifically scrutinize articles from the initial pool of 389 research studies retrieved from the Scopus database. Following the screening process 61 articles were retained for further analysis. A comprehensive descriptive analysis was performed to examine publication trends, journal-wise distribution and citation analysis to understand the profile of GST research. This was followed by the application of the Theory- Context-Method (TCM) framework to explore developments in GST research. The results of the study show that GST research in India is characterized by limited theoretical underpinning, restricted sectoral and geographical coverage and predominance of descriptive analyses. This points out the need to extend the contextual coverage and develop more advanced methodological approaches. Additionally, the review offers important implications for policymakers by identifying key research gaps from GST related areas and proposes multiple future research agendas. Furthermore, this study is one of the first reviews of GST in India and makes a significant contribution to the literature on indirect taxation both at national and international levels.

This paper examines the impact of remittances from Spanish emigrants in the Americas on Spain’s public finances between 1870 and 1936. Using a newly reconstructed remittance series, it analyses whether these inflows contributed to tax revenue and public expenditure in real terms. A Vector Error Correction Model is employed to assess both short- and long-term effects on fiscal variables, distinguishing between direct and indirect taxation. The findings sug-gest that remittances bolstered direct tax revenues, particularly through wealth accumulation and investment. At the same time, their impact on the purchasing power of indirect taxation was limited due to Spain’s underdeveloped fiscal system and informal economy. Additionally, evidence of a short-term crowding-out effect on public spending is found, aligning with recent literature on remittances substituting for state intervention. These insights contribute to broad-er discussions on the historical role of remittances in state capacity and fiscal development.

The introduction of the Goods and Services Tax (GST) in 2017 marked a significant reform in the Indian taxation system. GST replaced multiple indirect taxes levied by central and state governments and introduced a unified tax structure aimed at simplifying the tax regime, improving transparency, and creating a common national market. The reform has had a considerable impact on various sectors of the Indian economy, particularly Micro, Small and Medium Enterprises (MSMEs) and financial companies. MSMEs play a crucial role in economic development by contributing significantly to employment generation, industrial production, and exports. At the same time, financial institutions, including Non-Banking Financial Companies (NBFCs), play an important role in supporting MSME growth by providing credit and financial services. Therefore, understanding the effect of GST on both MSMEs and financial companies is essential for evaluating the broader economic impact of the reform. The main objective of this study is to compare the pre-GST and post-GST performance of MSMEs and financial companies in terms of profitability, compliance, and operational efficiency. The study also aims to evaluate the challenges and opportunities created by GST for MSMEs and financial institutions in India. The research adopts a descriptive and analytical research design and primarily relies on secondary data collected from annual reports, financial databases such as PROWESS and CMIE, government publications, and relevant academic literature. The period of study includes both pre-GST and post-GST years in order to assess the changes in business performance after the implementation of the new tax system. Various statistical tools such as descriptive statistics, correlation analysis, and regression analysis were used to analyse the data. The analysis was conducted using the Statistical Package for Social Sciences (SPSS). The results indicate that GST has improved tax transparency, increased compliance levels, and enhanced operational efficiency among businesses. Financial companies also benefited from improved documentation and financial reporting, which facilitated better credit assessment and lending decisions. However, the study also identifies certain challenges faced by MSMEs, including increased compliance costs, digital filing requirements, and working capital constraints during the transition period. Despite these challenges, the overall findings suggest that GST has contributed positively to the formalisation and growth of businesses in the long run. The study concludes that with appropriate policy support and simplified compliance mechanisms, GST can further strengthen MSME development and improve the performance of financial companies in India..