Repository Collections

In 2017, the implementation of the Goods and Services Tax (GST) in India has brought about a complete overhaul to the nation's tax structure by consolidating all forms of indirect taxes under a newly created digitally managed governance model. Digital interfaces (e.g.: GST Network (GSTN), e-invoicing and e-way bill systems) have increased levels of transparency, enhanced levels of compliance, and improved the degree of collaboration between the Central and State governments in India. The purpose of this research is to explore how the use of technology enabled GST mechanisms has supported greater transparency and accountability with regard to intergovernmental fiscal relations, particularly in terms of revenue sharing, compliance monitoring, and anti-evasion. To achieve this goal, secondary data was collected from official reports, GST revenue amounts and Tamil Nadu's budget documents between 2018 and 2024 to evaluate revenue trends and the use of digital compliance tools within the GST paradigm. The results of the analysis show evidence
that digital audit trails, real-time data sharing and automated reconciliation processes have helped reduce levels of information asymmetry and thereby strengthened the collaboration between the Central and State governments in India. In the case of Tamil Nadu, technology enabled changes in compliance, include increased growth rates and ultimately the formation of a more fiscally stable environment. Ultimately, it was determined that digital platforms play a critical role in enhancing cooperative federalism through the promotion of transparency, accountability and systematically improving revenue collection processes. To fully realize the long-term benefits of digital fiscal governance, ongoing technology advancements, capacity development and strong cybersecurity initiatives are required.