GST Implementation and Acceptance in Kerala, Tamil Nadu, and Karnataka: A Focus on IGST and its Distribution

ABSTRACT This in-depth investigation looks at the different challenges, budgetary impacts, and complex interstate connections of the Merchandise and Administrations Charge (GST) framework in Kerala, Tamil Nadu, and Karnataka, centering particularly on the conveyance instruments of the Coordinates Merchandise and Administrations Assess (IGST). Utilizing comprehensive quantitative examination of income information (2017-2024) and utilizing rigid measurable procedures such as combined T-testing, the consider reveals outstanding contrasts in GST usage encounters and the adequacy of IGST settlements over these financially shifted southern states. Our comes about emphasize that Kerala's service-focused economy shows the most prominent dependence on IGST (48-55%), while Karnataka's tech-oriented economy uncovers more grounded inside income generation with diminished IGST reliance (24-39%). Measurable examination uncovers a outstanding difference in IGST income collection between consumer-focused and producer-focused states (p=0.00189), substantiating stresses with respect to the reasonable execution of destination-based tax assessment standards. The investigate also highlights specific deterrents to execution, such as limitations in regulatory capacity, administrative burdens on SMEs, and continuous straightforwardness challenges in settlement calculations. These discoveries altogether include to current arrangement talks about on monetary federalism, income assignment strategies, and the continuous advancement of India's roundabout assess framework, whereas giving data-based recommendations for moving forward reasonableness and operational adequacy in IGST dissemination among states with contrasting financial systems. Keywords: GST implementation, IGST distribution, fiscal federalism, southern Indian states, destination principle, revenue allocation, tax compliance, centre-state relations.