Distributional Effects of GST in India Evidence from the 2022–23 Household Consumption Expenditure Survey
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Special Article, Economic and Political Weekly, Vol. 60, Issue No. 37, 13 September, 2025Authors
Sacchidananda MukherjeeAbstract
The distributional impact of the goods and services tax is a central concern in public finance. Using data from the National Sample Survey (2022–23) on household consumption, this paper examines GST’s progressivity across rural and urban India by fractile classes of monthly per capita expenditure. Four measures—the Progressive Vertical, Kakwani, Reynolds–Smolensky, and Musgrave–Thin indices—show GST to be progressive. In rural areas, the bottom 50% and middle 30% each bear 31% of the burden; the top 20% bear 37%. In urban areas, the shares are 29%, 30%, and 41%. GST modestly reduces post-tax consumption inequality.