How Has Gujarat Achieved a 145% Surge in Its Taxpayer Base Since 2017?

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How Has Gujarat Achieved a 145% Surge in Its Taxpayer Base Since 2017?

Synopsis

Discover how Gujarat transformed its tax landscape, achieving a remarkable 145% increase in taxpayers since 2017. This change has not only streamlined compliance but also propelled economic growth, making it a model for other states.

Key Takeaways

  • 145% increase in taxpayer base since 2017.
  • Gujarat's taxpayer count reached 12.66 lakh by 2024-25.
  • Tax compliance improved significantly with GST.
  • Gujarat's GST revenue grew to Rs 1,36,748 crore.
  • State's growth rate of 6.38% exceeds the national average.

Ahmedabad, July 8 (NationPress) Gujarat has experienced a staggering 145% increase in its taxpayer base over the last eight years following the introduction of the Goods and Services Tax (GST), as reported by the state government.

From slightly more than 5.15 lakh taxpayers in 2017, the state now boasts 12.66 lakh registered taxpayers as of the 2024–25 fiscal year.

With the rollout of the GST, Gujarat has positioned itself as one of India's leading states in terms of tax compliance, revenue growth, and digital integration.

Once entangled in a complex web of Value Added Tax (VAT), Central Sales Tax (CST), octroi, and entry tax, the state's tax structure has undergone a significant transformation under the 'One Nation, One Tax' initiative, simplifying compliance and energizing its economy.

Remarkably, Gujarat's taxpayer growth rate of 6.38% in 2024–25 surpasses the national average of 3.86%, showcasing the state's vibrant business landscape and the increasing formalization of trade.

Gujarat's GST revenue has surged to Rs 1,36,748 crore in 2024–25, reflecting a year-on-year increase of Rs 11,579 crore. The state contributes 8.2% to the national domestic GST pool, securing its position among the top three GST-contributing states in India.

Additionally, revenues from State GST (SGST) and Integrated GST (IGST) reached Rs 73,200 crore, growing by Rs 8,752 crore compared to the previous fiscal year. Gujarat recorded a 13.6% increase in SGST and IGST collections, outpacing the national average of 10.31%, with enhanced allocations poised to drive investments in education, healthcare, and infrastructure.

The state's performance in digital tax compliance has also been extraordinary. With 13.98 crore e-way bills generated by suppliers in 2024–25, Gujarat ranks first in the country for supplier count and second by e-way bill value, and third by volume, affirming its leadership in goods movement and trade transparency. When it comes to timely return filing, Gujarat is at the forefront nationally.

The state achieved an 88.9% compliance rate for GSTR-3B and 85.5% for GSTR-1, setting a standard for punctuality and discipline in GST filings.

Gujarat also ranked second nationally on the GST Key Performance Indicators (KPI) scoreboard, achieving a score of 71.69 points, only behind Maharashtra.

Out of 22 performance metrics, Gujarat excelled in nine, demonstrating its comprehensive excellence in implementation, compliance, and digital governance.

The streamlined tax framework has simplified operations for numerous traders and industries, alleviated cascading tax burdens, and enhanced transparency. For a state deeply reliant on trade and exports, this clarity and consistency have unlocked new growth opportunities.

Point of View

Gujarat's remarkable growth in its taxpayer base is a testament to effective governance and strategic economic reforms. The success of the GST implementation reflects the state's commitment to enhancing tax compliance and fostering a business-friendly environment, setting a benchmark for others across the nation.
NationPress
25/07/2025

Frequently Asked Questions

What percentage increase did Gujarat see in its taxpayer base since 2017?
Gujarat recorded a 145% increase in its taxpayer base since 2017.
How many registered taxpayers does Gujarat have as of 2024-25?
As of the 2024–25 fiscal year, Gujarat has 12.66 lakh registered taxpayers.
What is the primary reason for the increase in Gujarat's taxpayer base?
The increase is primarily attributed to the implementation of the Goods and Services Tax (GST).
How does Gujarat's taxpayer growth rate compare to the national average?
Gujarat's taxpayer growth rate of 6.38% significantly outpaces the national average of 3.86%.
What was Gujarat's GST revenue in 2024-25?
Gujarat's GST revenue soared to Rs 1,36,748 crore in 2024-25.