North-eastern states shine under GST regime, says Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on July 21 lauded the North-Eastern states' outstanding performance under the Goods and Services Tax (GST) regime. Speaking at the Investiture Ceremony of the Central Board of Indirect Taxes and Customs in Guwahati, Assam the Finance Minister said that the region, including Assam, has witnessed substantial growth, making it one of the biggest beneficiaries of the GST system.

Addressing the audience, Sitharaman expressed satisfaction with the country's economic progress, affirming that India's fastest-growing economy is experiencing balanced attention and stimulus across all sectors. The results of these efforts are evident and promising.

She acknowledged the potential inflationary pressure stemming from agricultural output, particularly on perishable goods. To address this, the government is taking proactive measures to ensure the availability of such items at affordable rates. Sitharaman expressed optimism that India would maintain its growth momentum.

Assam, one of the North-Eastern states, has been at the forefront of GST implementation. Previously, under the leadership of the then Finance Minister, Himanta Biswa Sarma, who now serves as the Chief Minister of the state, Assam was among the first states to ratify the GST.

According to the RBI Report on State Finances released in January 2023, the North-Eastern states have achieved exceptional growth under the GST regime. These states recorded a compounded annual GST revenue growth rate of 27.5 per cent, outperforming the national average of 14.8 per cent since the GST's implementation.