Nearly 8 lakh GST registrations in 6 months, UP leads the way
Nearly 8 lakh new registrations by taxpayers took place under Goods & Services Tax (GST) during January-June period of calendar year 2026, data from GST portal said. Experts listed various reasons including ease of registration including . They say simpler registration process will lead to more formalisation and ease of compliance.
As on June 30, total number of registrations reached 1.67 crore as against 1.59 crore on December 31, 2025. Among States and UT, Uttar Pradesh tops the list with over 22 lakh registrations, followed by Maharashtra with over 20.5 lakh and Gujarat with over 14.3 lakh. During the first half period, Uttar Pradesh added more over 2.54 lakh followed by Maharashtra (over 1 lakh) and Gujarat (over 73,000).
Rise in registrations
One important reason for rise in registrations is easier process announced last September by the GST Council. It prescribed the introduction of an optional simplified GST registration scheme, wherein registration shall be granted on an automated basis, within three working days from the date of submission of application in case of low-risk applicants and applicants, who based on their own assessment, determine that their output tax liability on supplies to registered persons will not exceed Rs.2.5 lakh per month (inclusive of CGST, SGST/UTGST and IGST). The scheme will provide for voluntary opting into and withdrawal from the scheme. This will benefit around 96 per cent of new applicants. It was made effective from November 1, 2025.
Listing the reasons, Jignesh Ghelani, Partner at Dhruva Advisors said that one key reason is the commercial need to be part of the GST credit chain, as GST registration enables B2B suppliers to issue tax invoices and allows customers to avail input tax credit. Growth in e-commerce and platform-led commerce is also relevant, as GST law requires registration for specified e-commerce operators and for persons supplying through such operators. “Another contributing factor is the increasingly data-led GST ecosystem, where returns, e-invoicing and e-way bill systems make transactions more visible and encourage businesses to operate within the tax net,” he said.
According to Ikesh Nagpal, Lead-Indirect Tax, AKM Global, the introduction of Rule 14A, with Aadhaar-based registration and approval within three working days for eligible taxpayers, has substantially lowered the entry barrier for MSMEs and first-time entrepreneurs. Additionally, India’s growing digital economy has also played an important role. “GST registration is therefore viewed beyond a statutory requirement, as a business enabler that helps enterprises access larger markets, build credibility with customers and integrate seamlessly into the formal economy,” he said.
Expanding compliance
Experts also found increase is more widespread. Karthik Mani, Partner at BDO India dissected Ministry data to found that States like Telangana, Maharashtra and Uttar Pradesh leading this growth, driven by robust business activity and expanding compliance. The GST 2.0 reforms, rolled out from September 2025, have played a significant role in encouraging new taxpayers to come under the formal tax net, giving a fresh push to overall business and economic activity.
“At the same time, the lowering of the mandatory e-invoicing threshold for businesses with an annual turnover of Rs.5 crore and above from April 2026 has made it increasingly necessary for smaller businesses to obtain voluntary registration in order to transact seamlessly with larger enterprises in their supply chain,” he said.
