4.05 lakh businesses based in state closed since GST rollout
Ahmedabad: While the goods and services tax regime was aimed at improving business ease and simplifying taxes, some 4.05 lakh businesses based in Gujarat closed after the new regime was rolled out.
According to data from the state commercial tax department, 4.05 lakh GST identification numbers (GSTINs) have been cancelled so far, implying that these many businesses either shut down or were consolidated.
The number of closures in the past two years are equivalent to 47% of the number of closures in the first five years of the GST regime. Till FY 2022, some 2.75 lakh taxpayers had got their GSTINs cancelled.
The number of cancelled GSTINs — 4.05 lakh — equals 30% of the current number of 11.95 lakh taxpayers in Gujarat. SGST officials and industry players attribute this to business closures or consolidation, mergers and acquisitions.
