EVALUATING THE IMPACT OF TAX STRUCTURE ON THE REVENUES OF THE CENTRAL GOVERNMENT OF INDIA

Economics

The tax shape performs a crucial position in figuring out the sales technology capability of any authorities, and in India, it immediately impacts the economic fitness of the relevant authorities. This observe targets to assess the effect of India`s evolving tax shape at the sales of the relevant authorities, especially focusing at the Goods and Services Tax (GST) implementation, company tax reforms, and direct tax series mechanisms. The advent of GST in 2017 marked a big shift withinside the oblique tax machine, consolidating a couple of taxes into one and increasing the tax base. However, its effect on tax sales has been each high quality and challenging, with troubles in compliance, implementation, and short-time period sales fluctuations. Additionally, company tax price cuts, geared toward boosting investment, have had a short-time period bad impact on sales, at the same time as reforms withinside the earnings tax shape have caused consistent increase in direct tax collections. Through an in depth evaluation of tax sales trends, the observe investigates how those structural adjustments have inspired the relevant authorities's monetary fitness. The findings advocate that at the same time as tax reforms have led to advanced compliance and expanded sales, demanding situations stay in addressing tax evasion, increasing the tax base withinside the casual sector, and making sure strong sales streams amid monetary fluctuations. The observe additionally highlights the want for persisted digitalization, higher enforcement mechanisms, and broader taxpayer training to beautify sales series. This studies affords treasured insights for policymakers in refining India's tax shape to make sure sustainable increase in authorities sales. It additionally shows that a balanced approach, combining reforms in oblique taxes, direct taxes, and company taxes, is critical for growing a resilient and inclusive taxation machine that may face up to monetary volatility and make a contribution to long-time period monetary stability.

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