According to the Ministry of Finance, States’ SGST revenue, including compensation released to States, in the post-GST period of 2017-18 to 2022-23 has achieved a tax buoyancy of _______.​

Correct option is C

The correct answer is (C) more than 1

• As per data shared by the Ministry of Finance, the SGST revenue of States (including compensation for revenue loss) from 2017–18 to 2022–23 has shown a tax buoyancy of more than 1.

• Tax buoyancy measures the responsiveness of tax revenue growth to changes in Gross Domestic Product (GDP). A buoyancy greater than 1 means tax revenue grew faster than the GDP, indicating better revenue performance post-GST implementation.

• Tax Buoyancy > 1 implies improved revenue efficiency and economic compliance.

• The GST regime was introduced on 1 July 2017, subsuming various indirect taxes.

• The GST Compensation to States Act, 2017 assured compensation to States for any revenue shortfall for 5 years.

• The compensation period ended on 30 June 2022, but the government cleared dues even after that date.

• SGST is the State component of GST and contributes significantly to state-level revenue.