GST Registrations Rise Sharply in Gujarat Amid Improved Compliance and Digital Reforms

Ahmedabad: Gujarat has witnessed a notable increase in Goods and Services Tax (GST) registrations in recent months, indicating stronger business activity and improved tax compliance within the state.

According to data available on the GST portal, 57,018 new GST registrations were added between October 31, 2025, and February 28, 2026, raising the total number of registered taxpayers in Gujarat to 13,82,341 from 13,25,324.

This growth is part of a broader nationwide trend. Across India, GST registrations have increased by over 5 lakh during the same period, pushing the total number of registered taxpayers beyond 1.61 crore as of February 28, 2026, compared to 1.56 crore on October 31, 2025.

The increase in registrations reflects improvements in the GST compliance ecosystem and easier onboarding of taxpayers. Under the CGST Act, 2017, registration is mandatory for persons whose aggregate turnover exceeds the prescribed threshold as per Section 22, and for certain specified categories of suppliers as per Section 24, irrespective of turnover.

Experts attribute the recent rise in registrations to multiple administrative and technological reforms introduced to simplify the registration process. One of the key developments is the simplified GST registration framework, which enables applicants to complete the process within three working days through SMS-based verification, significantly reducing documentation requirements and procedural delays.

Another contributing factor has been policy measures encouraging smaller enterprises to enter the formal tax system. The lower registration threshold introduced for certain small and low-risk businesses has incentivized many small and medium enterprises (SMEs) to voluntarily register under GST and participate in the formal economy.

In addition, the integration of e-invoicing and the e-way bill system has streamlined compliance and reduced administrative burdens for businesses. These digital mechanisms improve transparency in transactions and facilitate real-time reporting within the GST ecosystem.

Tax professionals also highlight the growing role of the digital economy and e-commerce platforms, where suppliers are generally required to obtain GST registration before making supplies through such platforms. This requirement, aligned with provisions governing registration of certain categories of suppliers under Section 24 of the CGST Act, has further contributed to the rise in registrations.

While Uttar Pradesh and Maharashtra continue to lead the country in terms of total GST registrations, Gujarat remains one of India’s key industrial hubs and continues to play a major role in expanding the national GST taxpayer base.