STRENGTHENING STATE CAPACITY THROUGH GST REVENUE AUGMENTATION

The Goods and Services Tax (GST) is a pivotal fiscal reform aimed at streamlining India's tax administration. However, states have faced challenges in revenue optimization, compliance and evasion post-implementation. CEGIS addresses these challenges by focusing on three key outcomes: a) Enhancing primary compliance through low-cost, non-invasive methods, thereby increasing revenue and creating positive spillovers associated with value-added tax structures, b) Curtailing tax evasion using analytics to identify structures facilitating tax evasion, and c) Boosting administrative efficiency and streamlining personnel management to enhance effectiveness and capacity. Our efforts in two states are driven by a comprehensive understanding of the complex interplay between tax policy, economic behaviour and administrative efficiency, ensuring equitable solutions for all stakeholders.