A report released by SBI Research, marking eight years since the launch of the Goods and Services Tax (GST), shows that just five Indian states are home to nearly 50% of all active GST taxpayers. The findings highlight a concentration of tax participation and a disparity across regions, despite ongoing efforts to expand the tax base.
According to the data, Uttar Pradesh records the highest share, accounting for 13.2% of all registered GST payers. Maharashtra follows with 12.1%, then Gujarat at 8.4%, Tamil Nadu at 7.7%, and Karnataka with 6.9%. Together, these five states make up around half of the total 1.52 crore active GST registrants in India.
The report also brings attention to certain economically advanced states where GST participation falls short when compared to their contribution to the national Gross State Domestic Product (GSDP).&nbsp;
These include Telangana, Tamil Nadu, Kerala, Andhra Pradesh, and Karnataka, all of which report a smaller proportion of GST taxpayers than their economic weight would suggest.
&ldquo;This gap points to areas with substantial scope for greater formalisation and expansion of the GST base,&rdquo; the report observes.
In contrast, states like Uttar Pradesh, Gujarat, and Bihar demonstrate a reverse trend, showing stronger GST enrolment relative to their share in the national economy. Bihar, in particular, stands out by contributing 4.3% of the GST taxpayer pool, despite holding only a 2.8% share of India&rsquo;s GSDP. This trend signals increased formal economic activity and improved compliance in such regions.
Meanwhile, states such as Uttarakhand, Chhattisgarh, Jammu &amp; Kashmir, and Himachal Pradesh each account for 1.4% or less of the total GST taxpayer count, indicating limited participation in the tax regime.
The report also notes that women make up one in five active GST taxpayers across the country, suggesting an increasing role for women in formal business and trade sectors.
As the GST framework enters its ninth year, the analysis underlines the progress made in boosting taxpayer numbers, while also pointing out untapped potential in several high-income states where tax participation remains below expectations.

Nearly 50% of India’s active GST taxpayers are based in five states, including Gujarat

Gujarat Among Top Five GST Taxpayer States

Nearly 50% of India’s active GST taxpayers are based in five states, including Gujarat

July 23, 2025 | 22:53 IST