Experts also attribute different reasons for the expansion of tax base, and one reason is increasingly small and medium businesses joining the base
With ease of process, number of GST registrations has seen monthly average growth of over 1.25 lakh between November and February, data from GST portal showed. While Uttar Pradesh continues to have maximum number of GST registrations, Maharashtra recorded maximum addition in the four months period.
According to the GST portal, total number of GST identification number was over 1.56 crore on October 31, 2025, which rose to over 1.61 crore on February 28, 2026 showing an increase of over 5.16 lakh.
After GST Council recommendations, simplified GST registration scheme for small and low-risk businesses was made effective from November 1, 2025. With the introduction of an optional simplified scheme, registration is being granted on an automated basis within three working days from the date of submission of application in case of low-risk applicants. At the time of introduction , it was said that the new scheme will benefit around 96 per cent of new applicants applying for GST registration.
“The surge in new taxpayers under the GST framework reflects the growing confidence in India’s simplified tax ecosystem. The introduction of Aadhaar authentication has significantly expedited and streamlined GST registration process, allowing applicants to receive registration numbers much faster. Further, the widespread adoption of e-invoicing, along with its seamless integration into the e-way bill system, has reduced administrative burden and made compliance processes more efficient for businesses,” Smita Singh, Partner (Indirect Tax) at S&A Law Offices said.
key factors
Experts also attribute different reasons for the expansion of tax base, and one reason is increasingly small and medium businesses joining the base. The GST Council has unveiled a New Rule 14A for a quick 3-Day Registration wherein SMEs can get registrations in maximum three days with only basic documentation and on a straight through process. While this comes with certain restrictions like a threshold limit of ₹2.5 lakh per month of ITC which can be passed on, it still helps SMEs.
“This is the key reason why GST registrations have shot up during this period. In case one breaks up the figure of total registrations from Nov’25 to Feb’26 between Rule 14A and normal registrations, one would certainly witness a skewed curve towards Rule 14A ones,” said Vivek Jalan, Partner at Tax Connect.
Another reason could be strong import momentum. According to Sivakumar Ramjee, Executive Director- Indirect Tax with Nangia Global, in February 2026, import-related IGST collections increased by 17.2 per cent compared to February 2025, while cumulative growth stood at 13.8 per cent. “This sustained rise in import revenue reflects higher trade volumes and expanding cross-border transactions. Increased import activity typically brings more importers, distributors, logistics operators and intermediaries into the GST framework, contributing to a broader registration base” he added.
Saurabh Agarwal, Tax Partner at EY India highlighted that simplified registration framework for suppliers operating through Electronic Commerce Operators (ECOs) has lowered entry barriers for micro-entrepreneurs and gig workers. “Together with GST rate rationalisation aimed at widening the tax base, these measures have strengthened compliance, expanded the taxpayer universe, and reinforced revenue stability—advancing India’s transition to a more transparent and digitally integrated tax ecosystem,” he said.
Published on March 3, 2026