Explanation : Before the regulation of GST (Goods & Services Tax) on 1st July, 2017 the principal source of States own tax revenues was sales tax which accounts for about 60 per cent of the total. The other major components of States own tax revenues according to their revenue share were State excise, registration and stamp duty, motor vehicle and passenger tax, electricity duty, land revenues, profession tax, entertainment taxes and other sundry taxes. In the wake of economic reforms, several States competitively announced various tax concessions, especially sales tax concessions, to attract private investments. These tax wars resulted in considerable reduction in the buoyancy of growth of tax revenues of the States without commensurate gains In terms of private investment. ....Read more