📰 Introduction
A recent report by the State Bank of India’s Economic Research Department, led by Dr. Soumya Kanti Ghosh shows that one-fifth (20%) of active GST taxpayers in India now include at least one woman, and 14% of businesses are fully women-led. For Manika TaxWise, this signals not just a fiscal milestone, but a social shift. In this deeply researched, SEO-optimized article, we explore what it means for financial inclusion, business growth, and tax compliance in India.
1. GST Landscape: A Snapshot
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Over ₹1.52 crore active GST registrations as of May 31, 2025
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20% have at least one-woman member, while 14% are entirely women-led
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Women represent 15% of all income taxpayers and hold 40% of total bank deposits
Key context: Introduced in July 2017, GST fostered formalization, easier tax compliance, lower costs, and interstate commerce integration across India
2. Why This Matters – Economic and Social Perspective
✅ Female Inclusion Boosts Formal Economy
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Women’s growing GST participation reflects their increasing role in the formal business sector. LLPs and private limited firms show especially high women representation
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Incomplete gender inclusion can slow equitable economic growth; here, data shows progress.
📈 Tax Base Expansion & Revenue Growth
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GST collections doubled between FY21–FY25, now averaging ₹2 lakh crore/month
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Formal setups with women promote compliance and boost indirect tax collections.
🌍 Regional Diversity and Potential
| State | % of GST Taxpayers | % of Gross Revenue |
|---|---|---|
| Uttar Pradesh | ~13.2% | Among top contributors |
| Maharashtra | ~12.1% | … |
| Gujarat | ~8.4% | … |
| Tamil Nadu | ~7.7% | … |
| Karnataka | ~6.9% | … |
| Top 5 total | ~50% | ~41% |
| (Source: SBI Research, figures rounded) |
Interestingly, big economies like Telangana, Kerala, Andhra Pradesh, Tamil Nadu, and Karnataka have fewer GST registrations relative to their GSDP, while states like UP, Gujarat, and Bihar outperform their GDP share, showing untapped formalization opportunities
🧘 GST’s Inflation-Convergence Effect
SBI’s quantile regression shows that GST has played a broad-based equalizing role across price levels in states by FY25—helping smooth inflation disparities
3. Real Examples & Illustrations
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In partnerships and Pvt Ltd firms, women leadership is rising fast—14% entirely women-managed entities and 20% mixed-gender setups suggest broad-based involvement.
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Women entrepreneurs in smaller states are leveraging GST registration to access credit and formal markets.
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Bank deposits gaining traction: women contribute 40% overall deposits, signalling financial inclusion beyond GST circles.
4. Practical Tips for Women Entrepreneurs & GST Filers
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Register early to enjoy input credit and compliance benefits.
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Use digital tools (GST portal, accountant apps) to ease return filing.
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Register as LLP or Pvt Ltd for better access to capital, legal structure, and credibility.
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Claim input tax credits—critical for MSMEs to reduce tax burden.
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Leverage networking and mentorship platforms, such as women’s business forums.
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Stay updated on schemes and subsidies available for women-led businesses.
5. Broader Implications
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Women as taxpayers bring not just fiscal benefit but economic dignity and independence.
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Formalization of women-run businesses strengthens small enterprise ecology.
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Financial inclusion via GST and banking boosts policymaking for equitable growth.
✅ Conclusion
The SBI report’s findings reveal that women are at the forefront of India’s economic formalization, registering one in five GST businesses and leading 14% of them. Combined with their share in personal tax and bank deposits, the momentum toward inclusion is undeniable. For Manika TaxWise, it’s a compelling story of empowerment, opportunity, and transformation through policy-led growth.
🔍 FAQs
Q1: What does “1 in 5 GST taxpayers is a woman” mean?
It means 20% of GST-registered businesses include at least one female member in their legal constitution
Q2: What’s the difference between "women-led" vs "includes a woman"?
Women-led means all members are female (14%), whereas includes a woman means at least one woman in ownership or leadership (20%) The Tribune
Q3: How has GST collection growth correlated with women's participation?
GST collections doubled during FY21–FY25, with higher compliance and new formal business entrants, including women-led firms boosting revenue
Q4: How to register a GST business if you’re a woman entrepreneur?
Use the GST portal (gst.gov.in), complete KYC (PAN, Aadhaar), choose your business type (proprietorship, LLP, Pvt Ltd), and file GSTR-1 to GSTR-3B monthly.
Q5: Does having GST registration benefit women financially?
Yes—enables input tax credit, access to formal lending, credibility, and compliance advantages.