Gujarat recorded a 145 per cent increase in the number of Goods and Services Tax (GST) payers over the last eight years, with the figure rising from over 5.15 lakh in 2017 to more than 12.66 lakh in the 2024–25 financial year.
According to the State govt’s data, Gujarat now ranks 3rd among other Indian states in terms of registered taxpayers. This reflects Gujarat’s expanding economic activities and high tax compliance by industries and other unorganised sector as well as individuals.
In FY 2024–25 just 1 year, the state posted a taxpayer growth rate of 6.38 per cent, which significantly outpacing the national average of 3.86 per cent.
Before GST was implemented in July 2017, under the leadership of PM Narendra Modi, Gujarat, same as the rest of India, operated under a fragmented tax structure.
This included VAT, CST, Octroi, Entry Tax, Service Tax, and Central Excise Duty, which often led to tax inefficiencies and compliance hurdles for businesses.
The previous system resulted in overlapping taxes and the cascading effect of ‘tax on tax’, driving up the cost of goods and obstructing smooth interstate trade—especially problematic for a business-centric and export-oriented state such as Gujarat.
The introduction of GST replaced this complicated tax network with a single, streamlined tax regime under the “One Nation, One Tax” vision. This reform did simplify tax calculation as well as payment processes for both businesses and consumers, reduces tax evasion, and improves the overall ease of doing business.
Since then, Gujarat has not only seen a steady rise in the number of registered taxpayers but has also achieved significant growth in GST revenue. Under the leadership of Chief Minister Bhupendra Patel and Finance Minister Kanubhai Desai, the state reported GST collections of ₹1,36,748 crore in FY 2024–25 a YoY increase of ₹11,579 crore.
The release stated that Gujarat now contributes 8.2 per cent of India’s domestic GST revenue, placing it third nationally in terms of collections. Gujarat also witnessed a noteworthy rise in revenue from State GST (SGST) and Integrated GST (IGST), collecting ₹73,200 crore in FY 2024–25, which marked a jump of ₹8,752 crore from the previous fiscal year.
While the national average growth in SGST and IGST revenue was 10.31 per cent, Gujarat exceeded this with a growth rate of 13.6 per cent.
Gujarat also leads in timely GST return filings, with 88.9 per cent compliance for GSTR-3B and 85.5 per cent for GSTR-1 within the prescribed deadlines—highlighting the state’s disciplined and efficient tax administration.
Source from: https://newsarenaindia.com/nation/gujarat-sees-145-pc-rise-in-gst-taxpayers-in-8-years/49680
