• Dr. Aju Saigal LFICWLS, FIETE, MIEI, CEng

The introduction of the Goods and Services Tax (GST) in India marked a major shift in the country’s indirect tax structure, with the Integrated Goods and Services Tax (IGST) forming a critical component for managing interstate trade. Designed to facilitate smooth credit flow and equitable distribution of tax revenue, the IGST mechanism is central to India’s vision of cooperative federalism. However, practical implementation has revealed discrepancies in how revenue is settled between the Centre and states, and among the states themselves. This thesis undertakes a comprehensive comparative analysis of IGST settlements from FY 2020–21 to FY 2024–25, focusing on state-wise revenue allocations and identifying emerging disparities. The study uses official data from the Ministry of Finance, CAG audit reports, and GST Council releases to evaluate the fairness and timeliness of settlements. It explores factors contributing to discrepancies, including cross-utilization of credit, delays in fund transfers, and misclassification of supplies. Through quantitative analysis and qualitative policy review, the thesis examines the implications of IGST settlement practices on state fiscal autonomy and resource predictability. Findings indicate that consumption-based states tend to receive a higher share of IGST settlements, while producing states express concerns over revenue erosion. Moreover, temporary retention of IGST by the Centre has caused cash flow stress for states. The study concludes by recommending institutional reforms, such as automated reconciliation systems, real-time data transparency, and clearer apportionment guidelines, to strengthen trust and efficiency in India’s fiscal federal framework.

Integrated GST (IGST),Revenue sharing, Fiscal federalism, IGST settlement, State-wise GST comparison

"Dissecting the IGST Settlement System: A Comparative Analysis of State-wise Revenue Shares and Discrepancies", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 5, page no.e758-e768, May-2025, Available :http://www.jetir.org/papers/JETIR2505560.pdf

"Dissecting the IGST Settlement System: A Comparative Analysis of State-wise Revenue Shares and Discrepancies", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 5, page no. ppe758-e768, May-2025, Available at : http://www.jetir.org/papers/JETIR2505560.pdf