A Study on Central State Financial Inclusion Outcomes on GST
Author : RV Bala Shanmugam and Dr. MD Chinnu
Abstract :
Financial inclusion has emerged as a key policy objective in India, aiming to integrate individuals and businesses into the formal financial system. The introduction of the Goods and Services Tax (GST) marked a significant fiscal reform jointly administered by the Central and State governments, with potential implications for financial inclusion outcomes. This study examines the role of Central and State-level GST implementation in promoting financial inclusion across India. It analyses how GST has influenced formalization of businesses, digital payment adoption, tax compliance, and access to banking and credit facilities, particularly among small traders and micro-enterprises. The study highlights variations in financial inclusion outcomes across states due to differences in administrative capacity, digital infrastructure, awareness levels, and policy execution.
Keywords :
Financial Inclusion, GST Reform, Cooperative Federalism, Fiscal Decentralization, Tax Compliance, Digital Economy, GST Revenue Sharing, State Autonomy, Economic.
