Lucknow: Uttar Pradesh Chief Minister Yogi Adityanath chaired a high-level review meeting of the State Tax Department and directed officials to strengthen revenue collection while ensuring a trust-based, transparent, and business-friendly tax administration system.
The meeting included senior officials from the department’s headquarters and field units, focusing on GST performance, tax reforms, compliance systems, and trader facilitation measures.
Focus on Trust-Based Tax Governance
CM Yogi Adityanath emphasized that the tax system must balance revenue growth with ease of doing business. He instructed officials to ensure:
- Faster GST registration and return processing
- Time-bound disposal of appeals and refunds
- Removal of unnecessary delays in tax services
- Respect and support for honest taxpayers
He said Uttar Pradesh must set a model of “trust-based tax administration” while contributing significantly to the state’s $1 trillion economy goal.
Strong Revenue Performance in 2025–26
Officials informed that Uttar Pradesh achieved ₹1,15,977 crore revenue from GST and VAT in FY 2025–26, reaching 98.8% of revised estimates.
Key highlights include:
- GST collection: Second highest in India after Maharashtra
- ₹2,658 crore GST arrears recovery (228% growth)
- ₹800 crore VAT recovery (29% growth)
- ₹2,071 crore recovery through enforcement actions (13% growth)
The state also successfully resolved 63,797 tax appeals during the year.
₹1.98 Lakh Crore Revenue Target for 2026–27
For FY 2026–27, the department has been assigned a ₹1,98,071 crore revenue target, including:
- ₹1,49,956 crore from GST
- ₹48,115 crore from VAT
In April 2026 alone, the state collected ₹10,896 crore, marking a 9.6% year-on-year growth.
UP Leads in GST Taxpayer Base
Officials highlighted that Uttar Pradesh has become:
- India’s largest GST taxpayer base with 21.82 lakh active taxpayers
- Leader in registration efficiency with 8-day average processing time (national average: 14 days)
- A high compliance state with 93% average monthly return filing rate
The state also maintains 100% physical verification of registrations, strengthening tax system integrity.
Faster Refunds and Digital Tax Administration
Uttar Pradesh has improved significantly in refund processing:
- Average GST refund time: 27 days (national average: 48 days)
- More than 99% returns filed for previous months
- Digital scrutiny of mismatched returns using 16 analytical parameters
Officials said technology and data analytics are now central to tax enforcement and compliance monitoring.
Crackdown on Fake Firms and Tax Evasion
The Chief Minister directed strict action against tax fraud, including:
- 477 FIRs registered against bogus firms
- 168 arrests made
- ₹180 crore ITC blocked
- ₹2,250 crore demand raised through adjudication
- Formation of SIT on November 7, 2025
He stressed that enforcement must continue alongside taxpayer facilitation.
Strong Recovery Through Enforcement Actions
Revenue recovery has improved significantly through enforcement measures:
- ₹2,658 crore GST arrears recovered (228% increase)
- ₹800 crore VAT arrears recovered
- ₹2,071 crore collected through enforcement drives
Officials said these improvements reflect stronger compliance and monitoring systems.
Technology-Driven Tax System
CM Yogi Adityanath instructed officials to expand the use of AI and data analytics in tax administration. Key developments include:
- Unified notice system under development
- Virtual hearings in 22 corporate circles
- Scrutiny of 1.33 lakh dealers leading to ₹2,369 crore demand creation
- ₹345 crore already recovered
He said technology must ensure transparency, efficiency, and reduced corruption.
Trader Engagement and Outreach Programs
The government has expanded engagement with businesses across Uttar Pradesh:
- Trader dialogues held in all 75 districts
- Training programs for GST filing and compliance
- Expansion of “Trade Bondhu” meetings at district level
- Planned block-level outreach from June 2026
Officials also held consultations with business associations, legal bodies, and sector-specific groups including bullion traders.
The Uttar Pradesh State Tax Department continues to show strong performance in revenue collection and compliance improvement. With record GST taxpayer numbers, faster processing systems, and increased enforcement actions, the state is moving toward a more digitally driven and trust-based tax governance model under the leadership of Chief Minister Yogi Adityanath.
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