Nagaland CM terms GST as 'backbone of state's economy'; urges timely tax compliance

Goods and Services Tax (GST) is the prime source of revenue for Nagaland and must become a collective responsibility, Chief Minister Neiphiu Rio told the Assembly on September 2, appealing to citizens to turn tax payment into a “people’s movement” for the state’s financial stability.

During Zero Hour, Rio was responding to concerns raised by MLA A. Pongshi Phom, who highlighted GST’s role as the backbone of the state’s exchequer. Phom stressed that despite Nagaland’s potential in sectors such as food packaging, juices, pickles, and biofuels, tax collection gaps remain, particularly between VAT and GST.

He noted that state GST revenue saw a 104% year-on-year jump in June 2025, following robust growth of 43% in April and 44% in May, driven by reforms, enforcement, and growing business compliance.

Phom also urged the government to expand GST to areas such as commercial house rents, sand and stone chips, and unauthorized transporters, besides calling for amendments to outdated GST laws and timely filing of returns by DDOs. He proposed setting up a State GST Grievance Redressal Committee with representation from government, trade bodies, and tax professionals.

Rio, in his reply, assured that preventing leakages in GST deductions and collections remains the state’s top priority. He reiterated that no government can survive without taxes and appealed to businesses and citizens alike to pay on time, saying such compliance would directly strengthen Nagaland’s economic base.