• Notification Date: 22-07-2023
• Notification No: N/A

North-eastern States Witness Remarkable GST Growth

Union Finance Minister Nirmala Sitharaman on Friday praised the North-eastern states for their impressive success in GST collection and devolution during her recent visit to Guwahati. Citing the 2023 RBI report on state finances, she revealed that the eight North Eastern states recorded a noteworthy compounded annual GST growth of 27.5%. 

The occasion was the Investiture Ceremony, where officers and staff of the Central Board of Indirect Taxes and Customs (CBIC) were honoured with the Presidential Award for their ‘Specially Distinguished Record of Service’. 

The Finance Minister highlighted the fundamental principle of GST, emphasizing that it revolves around taxation and consumption rather than being solely based on production origin. This destination-based approach has particularly benefited the Northeast consuming states, leading to remarkable improvements in GST collection and state distributions. 

One of the early adopters of the GST Act, Assam, showcased a staggering 12-fold increase in tax collection since its ratification. Previously at ₹558.26 crore in sales tax collection, the state’s revenue surged to ₹7,097 crore under the GST regime. 

Sikkim and Meghalaya also experienced significant progress, with Sikkim’s collection soaring from ₹263.5 crore to ₹3,036 crore, and Meghalaya’s from ₹587.21 crore to ₹2,078 crore. 

Sitharaman expressed her appreciation for the positive impact of GST, not only on the states’ financial systems but also on the welfare of the people. 

Furthermore, recognizing the North East’s strategic position with borders shared by four countries and 25 functional Land Customs Stations (LCS), the Finance Minister urged officials to equip all LCSs with electronic facilities by December. This step would aid in curbing smuggling activities and enhancing security measures. 

Currently on a two-day visit to Assam and Tripura, the Union Minister’s acknowledgment of the region’s GST achievements underscores the positive outcomes of the tax reform on economic growth and development.