Comparative Analysis of Government Revenue Receipts from GST in Mizoram: Trends, Implications and Insights
Author : Dr. Lalchhantluangi Pachuau and Lalhriatrenga Siakeng
Abstract :
The introduction of GST in India has been a crucial step in indirect tax reforms, consolidating various central and state taxes into a single tax system. This has eliminated the cascading effects of taxes and established a unified national market, reducing taxes on goods by 25-30%. GST is expected to enhance competitiveness in domestic and international markets, leading to economic growth and increased tax revenue. The analysis of tax revenue trends in Mizoram highlights the growing importance of Goods and Services Tax (GST) as a primary revenue source compared to other taxes like Sales Tax and Entertainment Tax. GST collections have shown consistent year-on-year growth, surpassing the revenue from Sales Tax and Professional Tax by significant margins.
In contrast, Entertainment Tax revenue has decreased substantially, suggesting the need to reassess its role and potentially integrate it into the GST framework. Policymakers could explore ways to revitalize the entertainment sector, such as revising tax rates or aligning it better with the GST system. The findings indicate a shift towards GST as a larger component of the overall tax revenue. To maximize GST collections, the government should focus on improving tax administration, strengthening digital infrastructure, and providing training and support to businesses. Integrating elements of Sales Tax into GST and exploring new avenues for sales tax revenue could also help stabilize and potentially increase its contribution. Comparative analysis reveals that GST revenue has grown steadily, while Sales Tax and Professional Tax have seen fluctuations or declines. This highlights the growing reliance on GST as a reliable source of tax revenue.
Keywords :
GST, Mizoram, Revenue Receipts, Sales Tax, Entertainment Tax.
