Uttar Pradesh, Tamil Nadu, and Maharashtra lead in filing Goods and Services Tax (GST) returns monthly, demonstrating their economic prospect, showed by GSTN data, and the company processing tax returns.
Monthly compared to Maharashtra, Uttar Pradesh, and Tamil Nadu file more returns. On the last month of every quarter, Maharashtra is ahead when smaller businesses with annual sales up to Rs 1.5 crore also file their returns under a special scheme.
The most populated state in the country is Uttar Pradesh notified to have more than 908,900 GST returns depicting their monthly transaction summary in April (in form GSTR- 3B), while industrialized Tamil Nadu documented over 880,200 GST returns.
With over 798,600 monthly GST returns, Maharashtra was in third position. In the number of returns filed in April, Karnataka, Gujarat, and Delhi followed these states.
Monthly return filings of transactions demonstrate business activity in the state, along with the compliance levels, the potential of generating revenue for the state, efficiency in tax management, and the demand for goods and services. In such states exceeding 93% of the registered businesses have filed GST returns.
Maharashtra declared 1.46 million GST returns, ahead of 1.43 million returns filed by Uttar Pradesh and 1.05 million returns by Tamil Nadu, in the ended March quarter of FY24.
In the country with a gross state domestic product (GSDP) of ₹20.2 trillion in FY22, Maharashtra is the largest state economy, followed by Gujarat with ₹13.6 trillion and Tamil Nadu with ₹13.4 trillion. Karnataka has a GSDP of ₹12.35 trillion and UP has a ₹12 trillion economy. In GST return filings, some of the union territories and North Eastern states lag behind signifying their economic weakness.
Apart from Maharashtra and Uttar Pradesh, IT hub Karnataka, mineral-rich Odisha, and Tamil Nadu are the states where the GST cess charged on automobiles is collected the most, showing the automobile sector is bigger in these markets.
Maharashtra, Haryana, Delhi, Karnataka, and Gujarat are the largest importers of goods and services from other states profiting from Integrated GST (IGST) that is charged on inter-state sales, May data showed. Concerning overall GST revenue collection, Maharashtra led the list, followed by Tamil Nadu, Gujarat, Karnataka, and Uttar Pradesh.
Over 12.6 million businesses were qualified for filing GST returns at the end of March 2024 corresponding to 12 million in the same month of the previous year, depicting a near of 5% addition to the number of businesses needed for filing GST returns.
Recommended: Free Download Gen GST Software for Return E-Filing
In 2017 the new indirect tax system was introduced that is going to turn 7 on 1st July.
To unlock the business insights by providing the GST data and starting the long-awaited compliance rating system are high on the minds of the assesses.