Gujarat is leading the nation in Goods and Services Tax (GST) filing compliance, with 95% of registered businesses submitting their monthly returns on time by the end of May. Several other states, including Himachal Pradesh, Tamil Nadu, and Uttar Pradesh, have also achieved impressive compliance rates exceeding 90%. However, some northeastern states like Arunachal Pradesh and Manipur are still lagging behind, with compliance rates in the mid-70s. Improving tax compliance is vital for national revenue and fiscal health, with experts suggesting a combination of incentives and stricter penalties to encourage timely filings.
More than 90% of registered businesses in states like Gujarat, Rajasthan, Punjab, Uttar Pradesh, and Himachal Pradesh have consistently filed their monthly tax returns, according to official data. This high compliance rate has positioned these states at the top of the list for GST return filing compliance, while some northeastern states have lagged.
Gujarat has emerged as the leader, with 95% of businesses required to file monthly tax returns through Form 3B meeting the requirement by the end
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FAQ :
Gujarat has the highest GST filing compliance rate, with 95% of businesses filing their monthly tax returns on time.
States like Himachal Pradesh, Tamil Nadu, Uttar Pradesh, Punjab, Haryana, Delhi, Rajasthan, and West Bengal have also shown impressive compliance rates, exceeding 90%.
Northeastern states such as Arunachal Pradesh and Manipur are lagging behind, with compliance rates of 74% and nearly 77% respectively. The Andaman and Nicobar Islands have achieved nearly 80% compliance.
Form 3B is a summary of all monthly transactions conducted by a business or individual service provider, used for GST return filing.
High compliance in tax return filings signals an efficient tax collection system, directly impacting overall tax revenue, which Finance Commissions consider when allocating central government funds to states.
Experts suggest a multifaceted strategy including incentives for early filing, stricter penalties for late or non-filing, regular audits, clear communication, and enhancing digital literacy, connectivity, and infrastructure in remote areas.