30k top dealers generate 90% of Uttar Pradesh’s GST revenue
Uttar Pradesh now has the largest number of registered dealers/traders in India at 32 lakh but 90% of its Goods and Services Tax and Value Added Tax (VAT) revenue in 2023-34 was generated by just 30,000 top dealers, revealing a significant disparity in contribution, according to a government report.
Since the introduction of the GST regime in the country on July 1, 2017, Uttar Pradesh’s GST and VAT collection has significantly risen from Rs. 70,060 crore in 2019-20, to Rs. 1,10,346 crore in 2023-24, reflecting both growth and dependency on major businesses for tax revenue.
According to the recent report shared with the government by the state tax department, Uttar Pradesh is on top in India in terms of number of dealers/traders under the GST. The report puts the total number of registered dealers in the state at 32.74 lakh and the count is increasing.
“Following an awareness campaign launched July 7, 2022, under the chief minister’s guidance, 3.08 lakh new traders were registered in 2023-24 and another 68,667 in the current year from April 1 to June 30,” the report said.
The annual revenue collection data compiled by the tax department, however, shows that as much 90% of the total over Rs. 1.10 lakh crore GST and VAT came from just 30,000 big dealers with the rest of the dealers’ contribution being only marginal. Oil companies happened to be the major contributors.
