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More than 4,100 businesses registered
The Goods and Services Tax (GST) collected Nu 4.9 billion (bn) in revenue during its first six months after coming into effect on 1st January 2026, according to the Ministry of Finance (MoF). The GST replaced the previous Sales Tax regime and generated Nu 4.9 bn in revenue as of 30th June 2026. The figure includes GST collected from taxable domestic supplies and imports after accounting for applicable adjustments and refunds.
As of 30th June 2026, a total of 4,100 businesses and taxpayers had registered under the GST system. Registration applies to businesses that meet the prescribed threshold and other persons required to register under the GST Act and Rules. The Department of Revenue and Customs (DRC) said it is continuing to review and update the registration database to ensure that all eligible and active taxpayers are included in the GST registry.
The MoF stated that the introduction of GST, like any major tax reform, has presented challenges for both taxpayers and the tax administration during the initial implementation phase. Among the main issues identified are errors in filing tax returns, difficulties in distinguishing between taxable and exempt supplies, incomplete documentation, limited familiarity with digital filing among some taxpayers, and the transition from the previous Sales Tax system to GST-compliant invoicing, accounting and record keeping practices. Smaller businesses and some service sector taxpayers have required additional guidance during the transition.
To support taxpayers and ensure a smooth implementation, the DRC has conducted taxpayer awareness programs, deployed officials and focal persons to provide assistance, issued public notifications and guidance, and strengthened support through its regional offices. The DRC has also continued to improve the Bhutan Integrated Taxation System to support online registration, return filing, tax payment and monitoring. It has been engaging with businesses and other stakeholders to identify operational issues and provide clarifications where required.
The MoF said it remains committed to improving the GST system based on implementation experience and feedback from taxpayers. It is reviewing measures to simplify registration and filing procedures, improve user guidance and system functionality, strengthen taxpayer education, enhance helpdesk and regional support services, and reduce compliance burdens while maintaining transparency and protecting government revenue.
The ministry added that any further improvements to the GST system will be communicated through official notifications and guidance issued by the DRC.
