236 This paper examines the impact of goods and services tax (GST) on economic growth in developing and developed countries using the Arellano-Bond dynamic panel GMM estimation. The empirical results reveal that GST is negatively correlated with economic growth in developing countries, while statistically significant and positively correlated with economic growth in developed countries. Therefore, we conclude that the implementation of the current flat rate of GST is least efficient in collecting the higher revenue and stimulate growth in developing countries. Hence, the implementation of the current GST should be revised to generate higher revenue and economic growth without burdening the consumption and real per capita income in developing countries. https://jbrmr.com/details&cid=236 https://jbrmr.com/cdn/article_file/i-24_c-236.pdf Volume 10 Issue 3 24 2016-07-01 2016-07-17 no Goods and services tax economic growth Arrelano-Bond dynamic panel GMM estimation none 593237 89 0 Taufik Abd Hakim Faculty of Business and Management Universiti Teknologi MARA (UiTM) Sabah Malaysia Abdul Aziz Karia Faculty of Business Management Universiti Teknologi MARA (UiTM), Sabah Malaysia Imbarine Bujang Faculty of Business and Management UniversitiTeknologi MARA (UiTM) Sabah Malaysia