| Abstract | Digital governance has emerged as a critical instrument for promoting transparency, efficiency, and
inclusiveness in public financial management. In India, the implementation of the Goods and Services Tax
(GST) marked a transformative shift toward a unified indirect tax system supported by digital infrastructure.
This article examines how GST reforms, enabled by technology-driven tax administration, contribute to
strengthening inclusive economic growth while reshaping the dynamics of fiscal federalism, with a particular
focus on the state of Tamil Nadu. The study evaluates the role of digital platforms such as the Goods and
Services Tax Network (GSTN) in improving tax compliance, reducing leakages, and facilitating real-time
monitoring of revenue flows. It further analyzes the implications of GST for intergovernmental fiscal
relations, including revenue sharing, compensation mechanisms, and state-level fiscal autonomy. Using policy
analysis, secondary data, and state-specific revenue trends, the article explores how GST has influenced Tamil
Nadu’s fiscal capacity, public expenditure priorities, and development outcomes. The findings suggest that
while digitalized GST administration has enhanced transparency and broadened the tax base, challenges
persist in balancing central coordination with state fiscal independence. The study argues that strengthening
digital governance frameworks, improving cooperative federal mechanisms, and addressing revenue volatility
are essential for ensuring that GST reforms effectively support inclusive and sustainable growth in Tamil
Nadu and across India.
Keywords: Goods and Service Tax, Digital Governance, Network, Fiscal
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