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Role of GST in growing Digital payment adoption as a tool for financial inclusion in India

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Author Affiliations

  • 1Department of Commerce, Bagalkot University, Jamkhandi - 587301, Karnataka, India and Department of Commerce, Government First Grade College Hukkeri,-591309, Karnataka, India
  • 2Department of Commerce, Government First Grade College, Rabakavi Banahatti-587314,, Karnataka, India

Res. J. Management Sci., Volume 15, Issue (2), Pages 11-16, May,6 (2026)

Abstract

The Goods and Services Tax (GST) is one of the biggest tax reforms in India after independence, implemented on 1st July 2017. GST has transformed the India’s indirect taxation system. The introduction of GST has marked as significant structural reform aimed to formalizing the economy and improving tax compliance. Simultaneously, India has witnessed rise in digital payments, driven by policy initiatives and financial inclusion programs. This study examines the role of GST in growing digital payment adoption and its contribution to financial inclusion in India. This study analyzes the relationship between GST revenue and digital payments by using secondary data from RBI, NPCI website, Government Reports, and Press Reports. The study employs correlation analysis to examine the relationship between GST revenue and digital payment growth and comparative analysis by applying key indicators like digital payment adoption, financial inclusion index, GST revenue collection, the data is collected for the study from 2009-10 to 2024-25 and divide the period into pre-GST period and post-GST period. The findings of the study reveal as strong positive relationship between GST revenues and digital payment adoption, indicating GST has acted as a catalyst for formal financial inclusion. The study concludes that GST and digital payments together has significantly enhanced financial inclusion in India.

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