To increase GST and VAT collection in Uttar Pradesh, Chief Minister Yogi Adityanath directed the state tax department to implement a transparent and digital system. Emphasis was laid on convenience to traders, faster refunds and strict action against tax evasion.
Lucknow. Uttar Pradesh Chief Minister Yogi Adityanath has directed the state tax department to provide better facilities, respect and quick solutions to honest traders along with increasing the revenue. He said that the role of the State Tax Department is very important in taking the state’s economy to one trillion dollars. Therefore, the department will have to develop a trust-based administrative model along with revenue growth.
On Monday, the Chief Minister held a special review meeting with the administration, headquarters and field level officials of the state tax department. During this, he instructed the officials to make the tax system more simple, digital and accountable. The Chief Minister said that there should not be any unnecessary delay in processes like GST registration, return filing, appeal disposal and refunds.
Instructions to simplify GST registration and tax system
The Chief Minister asked the officials to maintain regular communication with traders and make small traders aware of tax related procedures. He also gave instructions to run taxpayer assistance programs up to the district and block levels. The Chief Minister said that with the help of technology and data analytics, tax evasion should be stopped, while legitimate business should be encouraged.
Record revenue collection from GST and VAT in UP
Officials told in the meeting that in the financial year 2025-26, the state received a total revenue of Rs 1,15,977 crore from GST and VAT. This is approximately 98.8 percent of the revised estimate. Uttar Pradesh stood second in the country in terms of GST collection. Maharashtra stood first and Karnataka stood third.
Apart from this, Rs 2658 crore was recovered as GST dues, which was 228 percent more than last year. At the same time, Rs 800 crore was recovered under 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.
Big revenue target set for financial year 2026-27
Officials informed that the department has been given a total target of Rs 1,98,071 crore for the financial year 2026-27. This includes a target of Rs 1,49,956 crore from GST and Rs 48,115 crore from VAT. The state collected revenue of Rs 10,896 crore in April 2026, which was 9.6 percent more than the same period last year.
Better performance of Gautam Buddha Nagar, Saharanpur and Varanasi zones
During zone-wise review, it was told that revenue growth was recorded in most of the zones in April 2026. Gautam Buddha Nagar zone recorded 18 per cent growth with a collection of Rs 1506 crore. Whereas an increase of 35.1 percent was recorded in Saharanpur zone and 33.2 percent in Varanasi I zone. Moradabad zone also performed better than last year. The Chief Minister directed the low performing zones to prepare a special action plan and achieve the target. He asked senior officials to go to the field and communicate directly with the traders.
Strict action continues on fake firms and GST Tax Fraud
The Chief Minister directed to continue strict action against tax evasion and fake firms. It was informed in the meeting that FIRs were registered in 477 cases against bogus firms and 168 people were arrested. A Special Investigation Team (SIT) was also formed on 7 November 2025. Officials said input tax credit worth Rs 180 crore was blocked, while a demand of Rs 2250 crore was made through adjudication action.
Instructions for early disposal of pending GST and VAT appeals
It was told in the review meeting that in the year 2025-26, a total of 63,797 cases, including 52,432 GST appeals and 11,365 VAT appeals, were resolved. At present, 18,504 GST appeals and 2,193 VAT appeals are pending. The Chief Minister directed the officials to ensure that the pending appeals are disposed of in a time bound manner.
Uttar Pradesh becomes the state with highest GST taxpayers
Officials said that there are 21.82 lakh active taxpayers in Uttar Pradesh, making the state the state with the highest number of GST taxpayers in the country. The average time for disposal of GST registration application in the state is only 8 days, while the national average is 14 days. The system of 100 percent physical verification is implemented here. The state is also ahead of the national average in terms of filing returns. More than 90 percent of taxpayers are filing returns by the due date. The average monthly return filing percentage in the state is 93 percent, while at the national level it is 91 percent. More than 99 percent of returns for the past months have been filed.
Focus on GST Refund and AI Based Tax Monitoring
Officials told in the meeting that the average period for disposal of GST refund cases in Uttar Pradesh is 27 days, while the national average is 48 days. The Chief Minister directed to make the refund process more transparent and faster so that the working capital of traders is not affected.
On technology-based tax administration, officials said that legal action is being taken on mismatch data in 1.59 lakh annual returns by fixing 16 parameters. A new module has been developed for issuing integrated notices. During scrutiny of 1.33 lakh dealers in the year 2025-26, a demand of Rs 2369 crore was made and Rs 345 crore was deposited. Virtual hearing facility has also been started in 22 corporate circles. The Chief Minister said that data based monitoring and AI based analysis will make tax administration more effective and control corruption will be possible.
There will be dialogue programs with traders and there will be extensive
The Chief Minister directed to further strengthen the communication programs with traders. Officials said that trader dialogue programs were organized with administrative officials in all 75 districts, in which GST registration, return filing and GST 2.0 reforms were discussed in detail. Traders were also given training on return filing and Vyapar Bandhu meetings were organized in all the districts. A plan has been prepared to start the dialogue program at the block level from June 2026.
Increased coordination with various business organizations and departments
It was also informed in the meeting that continuous communication is being held with various business sectors, business organizations and advocate associations at the state level. Apart from this, coordination has also been increased with CGST, DGGI, Railways and other departments. Keeping in mind the international circumstances, dialogue programs were also organized with bullion traders at the state and district level.