Chief Minister reviewed the State Tax Department, said special focus should be placed on trust-based administration along with revenue growth
Honest traders should receive convenience, respect and quick resolution along with increase in tax collection: Chief Minister
Chief Minister held direct interaction with zonal officers, reviewed performance of each officer
With 21.82 lakh active taxpayers, UP became the state with the highest number of GST taxpayers in the country
Cases related to GST appeals should be disposed of within the fixed time limit, applications should not remain pending: Chief Minister
Chief Minister directed that unnecessary delays in GST registration, return filing, appeal disposal and refund processes should be eliminated
In financial year 2025-26, the state received revenue of Rs 1,15,977 crore under GST and VAT, Rs 2658 crore recovered as GST arrears
Rs 2071 crore recovered through enforcement units, special monitoring on tax evasion and bogus firms
Revenue target of Rs 1,98,071 crore fixed for financial year 2026-27, collection of Rs 10,896 crore recorded in April 2026
Lucknow, May 25: Chief Minister Yogi Adityanath said that instructions have been given to the State Tax Department to ensure convenience, respect and quick resolution for honest traders along with increasing tax collection.
The Chief Minister said, “The role of the State Tax Department is extremely important in achieving the state’s one trillion dollar economy target and the department must present a model of trust-based administration along with revenue growth.”
CM Yogi was holding a special meeting on Monday with governance, headquarters and field-level officers of the State Tax Department. He told officers that the tax system should be made simpler, more digital and accountable. He directed that unnecessary delays in processes such as GST registration, return filing, appeal disposal and refunds should be removed.
He also instructed officials to maintain continuous dialogue with traders, spread awareness among small businessmen and run taxpayer assistance programmes up to district and block levels.
The Chief Minister said, “Along with preventing tax evasion through technology and data analytics, it is necessary to encourage legitimate business activities.”
It was informed during the meeting that in the financial year 2025-26, the state received total revenue of Rs 1,15,977 crore under GST and VAT, which was around 98.8 percent of the revised estimate. Uttar Pradesh ranked second in the country in GST collection, while Maharashtra ranked first and Karnataka third.
It was also informed that Rs 2658 crore was deposited as GST arrears, which is 228 percent higher than the previous year. At the same time, Rs 800 crore was recovered as VAT arrears, which is 29 percent higher than last year. Through enforcement units, Rs 2071 crore was recovered, which is 13 percent higher compared to the previous year.
Officials informed that for the financial year 2026-27, the department has been given a total target of Rs 1,98,071 crore, including a GST target of Rs 1,49,956 crore and a VAT target of Rs 48,115 crore. In April 2026, the state collected Rs 10,896 crore in revenue, which is 9.6 percent higher compared to the same period last year.
In the zonal review, it was informed that most zones of the state recorded revenue growth in April 2026. Gautam Buddh Nagar zone recorded 18 percent growth with collection of Rs 1506 crore, while compared to the same period last year, Saharanpur zone registered 35.1 percent growth and Varanasi First zone recorded 33.2 percent growth. Moradabad zone also registered good growth in April 2026 compared to April 2025.
The Chief Minister directed comparatively low-performing zones to prepare special action plans to achieve targets. He also instructed senior officers to personally visit the field and interact with traders.
The Chief Minister directed that strict action against fake firms and tax evasion should continue. During the meeting, it was informed that FIRs were registered in 477 cases against bogus firms and 168 arrests were made. An SIT was formed on November 7, 2025. Input tax credit worth Rs 180 crore was blocked and demand worth Rs 2250 crore was generated through adjudication proceedings.
During the review of appeal disposal, it was informed that in the year 2025-26, a total of 63,797 appeals were disposed of, including 52,432 GST appeals and 11,365 VAT appeals. At present, a total of 20,697 appeals are under consideration, including 18,504 GST appeals and 2,193 VAT appeals. The Chief Minister directed time-bound disposal of pending appeals.
Officials informed during the meeting that with 21.82 lakh active taxpayers, Uttar Pradesh has become the state with the highest number of GST taxpayers in the country. The average time for disposal of GST registration applications in the state is 8 days, while the national average is 14 days.
It is noteworthy that a system of 100 percent physical verification has been implemented in the state. In terms of return filing also, the state is ahead of the national average. More than 90 percent taxpayers are filing returns by the due date, while the average monthly return filing percentage is 93 percent in the state compared to 91 percent at the national level. More than 99 percent returns of previous months have already been filed.
It was also informed in the meeting that the average disposal period for GST refund cases in Uttar Pradesh is 27 days, while the national average is 48 days. The Chief Minister directed that the refund system should be made more transparent and faster so that the working capital of traders is not affected.
Regarding technology-based tax administration, officials informed that legal action is being taken on mismatch data in 1.59 lakh annual returns after fixing 16 parameters. A module has been developed for issuing integrated notices. In the year 2025-26, during scrutiny of 1.33 lakh dealers, demand worth Rs 2369 crore was generated and Rs 345 crore was deposited. Virtual hearing facilities have been provided in 22 corporate circles.
The Chief Minister said that data-based monitoring and AI-based analysis will increase the efficiency of tax administration and help in effective control over corruption.
CM Yogi directed that dialogue programmes with traders should be expanded further. Officials informed that trader interaction programmes were organised in all 75 districts along with administrative officers, where detailed discussions were held on GST registration, return filing and GST 2.0 reforms. Traders were also given training for return filing and Trade Bandhu meetings were organised in all districts. An action plan has also been prepared by the State Tax Department to conduct interaction programmes at block level from June 2026.
It was also informed in the meeting that dialogue has been established at the state level with various business sectors, trader organisations and advocates’ associations. Coordination has been increased with CGST, DGGI, Railways and other departments. In view of international circumstances, dialogue programmes were also organised with bullion traders at state and district levels.
