A new research report released by the State Bank of India (SBI) has spotlighted the rising participation of women in India's formal economic landscape, with key indicators showing a steady increase in female representation in tax compliance, banking, and business ownership.
According to the report, 20% of GST registered entities in India now include at least one female taxpayer, while 14% comprise entirely female taxpayers. This data reflects a significant shift towards women-led entrepreneurship and participation in the formal sector.
Key Highlights from the SBI Report
- One-fifth of GST registrations have at least one female member.
- 14% of GST taxpayers are fully run by women.
- 15% of income tax returns (ITRs) are now filed by women.
- 40% of India's total bank deposits are held by women.
- A growing number of LLPs and private limited companies are being registered with female participation.
The report underscores that the GST ecosystem has become more inclusive since its introduction in 2017, driving formalisation and opening new avenues for female-led businesses.
GST Taxpayer Base Expands Rapidly
As of May 31, 2025, the number of active GST registrations in India has crossed 1.52 crore. This includes:
- 1.33 crore normal taxpayers
- 14.81 lakh composition taxpayers
- 20,578 input service distributors
- 22,835 tax collectors at source
- 3.74 lakh tax deductors at source
- 3,808 under 'others'
This surge in registrations demonstrates India's expanding formal economy and a stronger tax base-key goals of the GST reform.
Doubling GST Collections and Fiscal Strength
The SBI report also notes that monthly gross GST collections have now surpassed Rs 2 lakh crore, having doubled in just five years, thereby improving the efficiency, transparency, and fiscal resilience of the Indian tax system.
Notably, 41% of GST revenues are driven by the top five states. Additionally, six states have crossed the Rs 1 lakh crore mark in GST collections, with IGST (Integrated GST) accounting for over 30% of total collections in these states, further highlighting regional economic contributions.
GST's Role in Inflation Convergence
An interesting insight from the report is the impact of GST on inflation convergence across states. Using a quantile regression analysis from FY21 to FY25, SBI researchers found that price variations across states have narrowed over time, indicating broad-based inflation convergence and the stabilising role of GST in harmonising price levels nationwide.
Conclusion
The SBI research offers an optimistic outlook on India's evolving tax and financial ecosystem, especially in light of rising female involvement in taxation and banking. The findings reflect deepening formalisation, enhanced revenue collection, and a more equitable economic structure-key enablers of inclusive growth and financial empowerment in the country.
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