Uttar Pradesh Tops GST Taxpayer List, South Lags Despite Higher Contribution to GDP

22 Jul, 2025 11:06 IST|Sakshi Post

Uttar Pradesh has the highest number of active GST taxpayers in the country, according to a recent SBI Research Report.

The report, released to mark eight years since the launch of the Goods and Services Tax (GST), highlighted that five states account for nearly 50% of the total active GST taxpayers in India. This shows that a significant concentration of tax registrations is limited to a handful of states, indicating scope for improvement.

These states include Uttar Pradesh, Maharashtra, Gujarat, Tamil Nadu, and Karnataka.

While Uttar Pradesh accounts for 13.2% of the active GST taxpayers in the country, Maharashtra follows with 12.1%, Gujarat with 8.4%, Tamil Nadu with 7.7%, and Karnataka with 6.9%.

Interestingly, the report reveals that while southern states — including Andhra Pradesh, Telangana, Tamil Nadu, Kerala, and Karnataka — have a higher contribution to the overall GDP, their share of active GST taxpayers is relatively low.

Meanwhile, states like Uttar Pradesh, Bihar, and Gujarat account for a higher share of GST taxpayers in comparison to their contribution to the GDP.
For context, Bihar accounts for 4.3% of the total active GST taxpayers, but its contribution to the overall GDP is only 2.8%.

The report highlights a gap in formalization and indicates untapped potential for GST expansion in these states.

The SBI Economic Research Department report also noted that there are over 1.52 crore active GST registrations. Of the total, one-fifth have at least one woman, and 14% of registered taxpayers consist entirely of female members (based on the constitution of the business).

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