SBI Report: Nearly 50% of GST Taxpayers In 5 States—This State Leads Charge

Since its rollout the Goods and Services Tax (GST) has completed eight years, a recent report by SBI Research showed that five states account for nearly 50% of the total active GST taxpayers in India.

What Does This Mean?

This highlights a significant concentration of tax registration in a handful of states, highlighting the scope for improvement in others.

"Top 5 states accounted for approx. 50% of total Active GST Tax Payers," the report said.

What Are The Five States Leading In GST?

The five states that are leading in GST taxpayer registrations are Uttar Pradesh, Maharashtra, Gujarat, Tamil Nadu, and Karnataka.

Which State Is At The Top Of This List?

Uttar Pradesh is leading this list, contributing 13.2% of all active GST taxpayers in the country. it is closely followed by Maharashtra at 12.1%, Gujarat at 8.4%, Tamil Nadu at 7.7%, and Karnataka at 6.9%.

Overall GST Participation Of States

While these are some of the states that are on the top of the list of active GST registrations and contributions in the country, the SBI report also observed that there are certain states that are lagging behind and underperforming in GST participation, despite being economically stronger, as compared to their share in the overall Gross State Domestic Product (GSDP).

These include states like Telangana, Tamil Nadu, Kerala, Andhra Pradesh, and Karnataka, which have a lower share of active GST taxpayers than their contribution to the national GSDP. This further highlights a gap in formalisation and shows that there is untapped potential for GST expansion in these states.

Contrastingly, states like Uttar Pradesh, Bihar, and Gujarat show a reverse trend. Their share in the total number of GST registrations is higher than their share in GSDP, which suggests greater formalisation and improved tax compliance.

For instance, Bihar contributes 4.3% of total GST  taxpayers, despite having only 2.8% share in national GSDP.

Additionally, the report also highlighted that states like Uttarakhand, Chhattisgarh, Jammu & Kashmir, and Himachal Pradesh contribute very little to the total GST taxpayer base, with each accounting for 1.4% or less.

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