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GST at Eight Years: Report Highlights Growth in Revenue and growing Women’s Inclusion in Formal Economy

There are over 1.52 crore active Goods and Services Tax (GST) registrations and one-fifth of registered GST taxpayers in India now have at least one woman, and 14 per cent of registered taxpayers have all female members (on the basis of the constitution of business), an SBI report revealed on Tuesday.

This representation is substantially high in limited liability partnership (LLP) and private limited companies and the vectors of increased formalization and momentum in corporate playbook augur well for equitable representation in the offing, according to the SBI’s Economic Research Department report.

“This data, along-with 15 per cent share of women in overall income taxpayers and 40 per cent in overall deposits, mirrors women empowerment,” said Dr Soumya Kanti Ghosh, Group Chief Economic Advisor, SBI.

In just five years (FY21-FY25), gross GST collection doubled and even average monthly gross GST collection is now Rs 2 lakh crore. Top five states account for 41 per cent of gross revenue and six states have crossed Rs 1 lakh crore mark, Dr Ghosh added.

States having GST collection of more than Rs 1 lakh crore have Integrated Goods and Service Tax (IGST) share of more than 30 per cent in their total domestic collection, emphasising the contribution of larger states in pushing GST collection across other states.

On July 1, the GST completed eight years since its rollout. Introduced in 2017 as a major step towards economic integration, GST replaced a maze of indirect taxes with a single, unified system.

It made tax compliance easier, reduced costs for businesses, and allowed goods to move freely across states. By improving transparency and efficiency, GST helped lay the foundation for a stronger, more integrated economy.

“Our results indicate that convergence pattern strengthens over time, peaking in FY25 across all quantiles. By FY25, convergence is strong across the spectrum, indicating a broad-based equalising effect of GST,” said Dr Ghosh.

Surprisingly, some of the larger and richer states like Telangana, Tamil Nadu, Kerala, Andhra Pradesh and even Karnataka have low share in active GST taxpayers vis-a-vis the state’s share in overall GSDP (Gross State Domestic Product).

“Interestingly, states like Uttar Pradesh, Bihar and Gujarat share in total GST taxpayers is larger than the state’s share in overall GSDP. This indicate that there is still a vast untapped potential in GST in these states,” the report mentioned.

(IANS)

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