134% Increase in GST Taxpayers Over 7 years

By: Admin
June 29, 2024
Categories: GST Recent News
4 Min Read

Since its implementation seven years ago, the goods and services tax (GST) has seen a significant 134% increase in new taxpayers. According to state commercial tax department data, the number of active taxpayers has grown from 5.08 lakh on July 1, 2017, to 11.95 lakh currently. This increase is attributed to the greater formalization of the economy and new investments by industry experts and tax professionals.

A source from the SGST department stated that improved business growth has contributed to the rise in GSTINs issued year after year. The new tax regime is also taxpayer-friendly, leading to more liberal new registrations. However, there was only a 0.5% increase in registrations in FY 2024 compared to the 11.90 lakh registrations in FY 2023.

To combat the growing issue of bogus billing scams for tax evasion, the process for obtaining new registrations underwent a significant change with mandatory biometric verification. This led to a marked decline in fresh GSTIN applications, with a decrease of around 25% between Nov 2023 and May 2024. The active taxpayer count does not include fraudulent registrations and is calculated after deducting cancelled registrations.

Industry sources also reported that fresh investments in semiconductors and other sectors have led to a rise in fresh GSTIN applications. Expansion by industries is yet another reason for the spike in active taxpayers.

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