Gujarat ranks third in India for GST taxpayer growth

Gujarat has emerged as a leader in GST taxpayer growth, ranking third in India. Since the GST's introduction in 2017, the state has seen a 145% increase in registered taxpayers, reaching over 12.46 lakh.

This growth reflects Gujarat's robust economic activity and tax compliance, with a growth rate of 6.38% in FY 2024-25, surpassing the national average.

Gandhinagar (Gujarat) [India], July 8 (ANI): Since the implementation of Goods and Services Tax (GST) in 2017, Gujarat has witnessed a steady annual increase in the number of new taxpayers. Eight years ago, when GST was introduced, the state had over 5.15 lakh registered taxpayers. As of FY 2024-25, this number has surged by 145 per cent, surpassing 12.46 lakh, more than double the original count. According to an official release, in terms of registered taxpayers, Gujarat now ranks third in the country, reflecting its growing economic activity and exemplary tax compliance.

In FY 2024-25, Gujarat recorded a taxpayer growth rate of 6.38 per cent, significantly higher than the national average of 3.86 per cent and ahead of many other states. There was a time when Gujarat, like the rest of India, operated under a complex tax structure comprising VAT, CST, Octroi, Entry Tax, Service Tax, and Central Excise Duty. This fragmented system posed significant challenges for traders, making tax compliance cumbersome and time-consuming.

The lack of uniformity in tax rates and regulations across states, coupled with the cascading effect of 'tax on tax', led to inflated costs of goods and created barriers to seamless trade. For a business-driven and export-oriented state like Gujarat, these complications were particularly burdensome. To address these challenges and provide a new direction for the country's economy, the Goods and Services Tax (GST) was implemented in India on July 1, 2017, under the visionary leadership of Prime Minister Narendra Modi.

With this reform, the country adopted a single tax--GST--for the supply of goods and services, while doing away with multiple other taxes. Guided by the principle of "One Nation, One Tax," GST has simplified the tax system, reduced tax evasion, and paved the way for ease of doing business.
With the implementation of GST, the process of tax calculation and payment has become significantly simpler for both traders and consumers.

Alongside the steady rise in the number of taxpayers, Gujarat has witnessed a substantial increase in its GST revenue. Under the leadership of Chief Minister Bhupendra Patel and Finance Minister Kanubhai Desai, the state registered GST collections of Rs 1,36,748 crore in FY 2024-25, marking a year-on-year increase of Rs 11,579 crore.

Gujarat now ranks third among Indian states in terms of GST revenue contribution, accounting for 8.2 per cent of the country's domestic GST collections. The release emphasised that Gujarat has not only consistently maintained a leading position in GST collections but has also registered a notable increase in revenue from SGST and IGST.

In FY 2024-25, the state garnered Rs 73,200 crore through SGST and IGST, marking a rise of Rs 8,752 crore compared to the previous fiscal year.
While the national average growth rate for SGST and IGST revenue stood at 10.31 per cent, Gujarat surpassed it with an impressive 13.6 per cent growth. The state also leads the country in the timely filing of GST returns. Gujarat achieved 88.9 per cent compliance in GSTR-3B filing and 85.5 per cent in GSTR-1 filing within the prescribed timelines, underscoring its disciplined and robust tax administration, the release stated. (ANI)