Uttar Pradesh secures 2nd spot in GST, nears full revenue goal
Lucknow, May 25: The Uttar Pradesh government earned a total revenue of Rs 1 lakh 15 thousand 977 crore in GST and VAT in the financial year 2025-26, which was about 98.8 percent of the revised estimate. Uttar Pradesh stood second in the country in GST, while Maharashtra stood first and Karnataka third. UP has become the state with the highest number of active GST taxpayers in the country at 21.82 lakh. Chief Minister Yogi Adityanath has directed that, in addition to increasing tax collection, honest businesses be provided with convenience, respect, and prompt redressal.
Chief Minister Yogi held a special meeting with administrative, headquarters, and field-level officials of the State Tax Department on Monday. Chief Minister Yogi stated that the State Tax Department plays a crucial role in achieving the state’s goal of achieving a trillion-dollar economy, and that the department must demonstrate a model of trust-based governance while simultaneously increasing revenue.
Chief Minister urged officials to simplify, digitize, and accountably streamline the tax system.
He directed that unnecessary delays in processes such as GST registration, return filing, appeal disposal, and refunds be eliminated. He directed that continuous dialogue with businesses be maintained, small businesses be raised, and taxpayer assistance programs be implemented at the district and block levels.
Chief Minister emphasized the need to utilize technology and data analytics to prevent tax evasion and promote legitimate businesses.
During the meeting, officials informed that in the financial year 2025-26, the state has received a total revenue of Rs 1,15,977 crore under GST and VAT, which is about 98.8 percent of the revised estimate. Uttar Pradesh stood second in the country in GST, while Maharashtra stood first and Karnataka third.
It was also informed in the meeting that Rs 2658 crore was collected as GST arrears, which is 228 percent more than the previous year. Whereas Rs 800 crore was recovered as VAT arrears, which is 29 percent more than last year. Rs 2071 crore was recovered through enforcement units, which was 13 percent more than last year.
Officials said that for the financial year 2026-27, the department has been given a total target of Rs 1,98,071 crore, in which the target for GST is Rs 1,49,956 crore and the target for VAT is Rs 48,115 crore. In April 2026, the state collected revenue of Rs 10,896 crore, which is 9.6 percent more than the same period last year.
Gautam Buddha Nagar zone saw an 18 percent increase in revenue
A zone-wise review revealed that revenue growth was recorded in most zones of the state in April 2026. Gautam Buddha Nagar Zone recorded an 18 percent increase with collections of ₹1,506 crore, while Saharanpur Zone saw a 35.1 percent increase and Varanasi First Zone a 33.2 percent increase compared to the same period last year. Moradabad Zone also recorded a significant increase in April 2026 compared to April 2025. The Chief Minister directed the lower-performing zones to develop specific action plans to ensure target achievement. He directed senior officers to personally visit the field and communicate with traders.
Chief Minister directed the continuation of strict action against fake firms and tax evasion. The meeting was informed that FIRs were registered in 477 cases against bogus firms and 168 arrests were made. The Special Investigation Team (SIT) was formed on November 7, 2025. Input tax credits worth ₹180 crore were blocked, and adjudication proceedings generated a demand of ₹2,250 crore. During the review of appeal disposals, it was reported that a total of 63,797 appeals, including 52,432 GST and 11,365 VAT appeals, were disposed of in 2025-26. Currently, 18,504 GST and 2,193 VAT appeals, totaling 20,697, are pending. The Chief Minister directed the timely disposal of pending appeals.
Officials at the meeting informed that Uttar Pradesh, with 21.82 lakh active taxpayers, has become the state with the highest number of GST taxpayers in the country. The average processing time for GST registration applications is eight days, compared to the national average of 14 days. A 100% physical verification system is in place in the state. The state also surpasses the national average in return filing. More than 90 percent of taxpayers are filing returns by the due date, while the average monthly return filing percentage is 93 percent in the state and 91 percent at the central level. Over 99 percent of returns have been filed in recent months.
Uttar Pradesh surpasses the national average in GST refunds
The meeting was informed that the average time for processing GST refund cases in Uttar Pradesh is 27 days, compared to the national average of 48 days. The Chief Minister directed that the refund system be made more transparent and quick so that the working capital of traders is not affected.
Regarding technology-based tax administration, officials stated that legal action is being taken on mismatched data in 1.59 lakh annual returns by setting 16 parameters. A module has been developed for issuing unified notices. During the scrutiny of 1.33 lakh dealers in 2025-26, demands worth ₹2369 crore were generated, and ₹345 crore were collected. Virtual hearings have been made available in 22 corporate circles. The Chief Minister stated that data-driven monitoring and AI-based analysis will enhance the efficiency of tax administration and enable effective control of corruption.
Chief Minister directed the expansion of dialogue programs with business owners.
