Since GST Launch, Gujarat Sees 145% Jump In Taxpayers

It has been nearly eight years since the Goods and Services Tax (GST) replaced the confusing web of taxes that once made up India’s indirect tax system. For Gujarat, the shift from a maze of Value Added Tax (VAT), Octroi, Entry Tax, Service Tax, Central Excise Duty, and more to a unified tax has delivered tangible gains.

The number of indirect taxpayers in Gujarat was around 5.15 lakh in 2017, when the GST was first implemented. It has shot up to 12.46 lakh in 2024-25, a record-breaking 145 per cent growth in eight years.

The change did not just bring in more taxpayers; it also brought in more money. Over the previous year, the increase in the state’s GST revenue in 2024-25 has been Rs 11,579 crore, while total collection reached Rs 1.36 lakh crore.

Earlier, Gujarat operated under a complex tax regime, which posed significant difficulties for traders. To streamline the system, the central government under Prime Minister Narendra Modi introduced GST on July 1, 2017, establishing the "One Nation, One Tax" framework.

A senior official in the state finance department said that the single-tax structure helped clear up confusion and improve compliance.

This has also significantly increased the state’s contribution to the national economy over the past eight years. Gujarat’s taxpayers' growth rate last year stood at 6.38 per cent, well above the national average of 3.86 per cent and ahead of many other states.

The state’s treasury has also seen a substantial boost. In 2024-25, Gujarat collected Rs 1,36,748 crore in GST, which is Rs 11,579 crore more than the previous year, according to the latest figures from the finance department.

The state now ranks third in the country in terms of GST revenue among all states, contributing 8.2 per cent to domestic GST.

Leading In Key Tax Components

The state also holds a leading position in State GST (SGST) and Integrated GST (IGST) collections. In 2024-25, Gujarat collected Rs 73,200 crore through SGST and IGST combined—an increase of Rs 8,752 crore from the previous year.

While the national growth rate for SGST and IGST revenue stood at 10.31 per cent, Gujarat recorded a 13.6 per cent growth.

Nation’s Top Performer In E-Way Bills

Gujarat also holds a strong position when it comes to the generation of e-way bills, the digital system used to track the movement of goods. In 2024-25, suppliers in the state generated 13.98 crore e-way bills.

Gujarat ranks first in India based on the number of suppliers using the system. It also stands second in terms of the total value of goods moved and third in the overall number of e-way bills generated.

State Scores 71.79 In National KPI List

In national Key Performance Indicators (KPIs), Gujarat has emerged as a front-runner, securing second place with 71.69 points, just behind Maharashtra’s score of 73.93.

Out of 22 performance parameters, Gujarat ranks first in nine. Furthermore, Gujarat has excelled in the timely filing of GSTR-3B and GSTR-1 returns, with compliance rates of 88.9 and 85.5 per cent, respectively, proving its disciplined tax administration.