From traditional tax to GST: analysing the tax revenue and economic growth of Haryana

Purpose This study evaluates the impact of the Goods and Services Tax (GST) on the finances of the state of Haryana, particularly focusing on its effect on tax revenue receipts and economic output. The research is driven by the need to assess the GST regime’s performance seven years after its implementation, with special attention to its implications for state finances. Design/methodology/approach The study employs secondary data covering the period from 2012–2013 to 2022–2023. Analytical techniques, including paired sample t-tests and regression analysis, are used to assess the changes in tax revenue and the economic output of the Haryana government post-GST implementation. Findings The results indicate a significant increase in tax revenue receipts following the adoption of GST. Additionally, the study finds a significant positive relationship between GST revenue and economic output in Haryana, suggesting that the GST regime has had a favourable impact on the state’s economic performance. Originality/value This research fills a gap in the existing literature by providing a comprehensive impact assessment of GST on a state’s fiscal health and economic performance, which has not been explored in previous studies. The findings can help policymakers in formulating strategies that capitalise on positive trends to ensure fiscal sustainability and economic stability within the evolving GST framework.