There has been a tremendous 134% rise in the number of new taxpayers, since the incorporation of the GST 7 years ago. As per the information from the state commercial tax department, currently, the number of active taxpayers has increased from 5.08 lakh on 1st July to 11.95 lakh.
The same rise is due to the significant formalization of the economy and new investments as cited by industry experts and tax professionals.
Driving Factors to Raise the GST Registration
State Goods and Services Tax (SGST) department source emphasized that increasing the number of GST Identification Numbers (GSTINs) issued each year is due to the rectified business environment. The GST regime is comprehended as being taxpayer-friendly and has motivated more liberal new registrations. But a rise in the registrations in FY 2024 was just 0.5% then to the registrations in FY 2023 i.e. 11.90 lakh.
Registration Process Changes to Fight Fraud
The process of registration has undergone a rise with the start of mandatory biometric verification to combat the rising problems of fake billing scams for tax evasion. The same actions are directed to a remarkable decline in the fresh GSTIN applications with a decline of nearly 25% between November 2023 and May 2024. Now the count of active taxpayers does not include the bogus registrations and is computed post deducting the canceled registration.
New Investments Impact
As per the report of the industry, the new investments specifically in the sector of semiconductors and other industries have influenced an increase in the new GSTIN applications. The same expansion of distinct industries has brought a rise in the number of active taxpayers.
Read Also: GST Registration Online for New Users on GST Portal
Closure: The number of taxpayers has been increased through the incorporation of GST which shows the formalization and growth of the economy. Certain actions to bridge the bogus registrations have temporarily restricted the pace of new applications, there is positivity in the overall trend, which has been brought via new investments along with the expansion of the industry.
