A Akhter
India’s economic power is not just expanding in numbers—it’s becoming more inclusive. According to a new report by SBI’s Economic Research Department, out of over 1.52 crore active Goods and Services Tax (GST) registrations in India, one-fifth of all registered taxpayers now include at least one woman. Even more significantly, 14% of GST-registered entities are entirely composed of female members, based on business ownership structures. This marks a remarkable leap in women-led entrepreneurship and formal participation in the economy.
This growing representation is most visible in private limited companies and limited liability partnerships (LLPs)—sectors rapidly formalising under the new-age corporate playbook. Dr. Soumya Kanti Ghosh, Group Chief Economic Advisor at SBI, noted that this, coupled with women comprising 15% of income taxpayers and holding 40% of total bank deposits, reflects a structural shift towards women’s financial inclusion and empowerment.
As GST completed eight years since its launch in 2017, its role in unifying indirect taxation and simplifying compliance has been transformational. In just five years (FY21–FY25), gross GST collections have doubled, with average monthly revenue now hitting ₹2 lakh crore. The top five states—Maharashtra, Karnataka, Gujarat, Tamil Nadu, and Uttar Pradesh—together account for 41% of total GST revenues, with six states crossing the ₹1 lakh crore annual mark.
Interestingly, while these larger states lead in revenue, their share in active GST taxpayers sometimes lags behind their contribution to GSDP (Gross State Domestic Product). For instance, Telangana, Kerala, Andhra Pradesh, Tamil Nadu, and even Karnataka show lower taxpayer representation relative to their economic output. Conversely, states like Uttar Pradesh, Bihar, and Gujarat punch above their economic weight, reflecting greater participation in GST despite lower GSDP share.
This disparity signals a vast untapped potential for formalisation in both developed and developing states. As convergence deepens, women-led businesses could play a vital role in pushing India toward a more balanced and inclusive tax base.
