Nagaland recorded a 28.4% growth in Goods and Services Tax (GST) collection in the financial year 2025–26, according to recently released data on all-India GST performance.
The total GST collection across India during the same period exceeded Rs 22.27 lakh crore, registering an 8.3% increase over the previous financial year.
GST continues to be the largest source of own tax revenue for Nagaland, contributing up to 68% of the state’s total own tax revenue, based on the previous year’s figures. The high share underscores its significance as the primary revenue driver for the state.
Nagaland has also emerged as one of the top-performing states in terms of GST growth over the past year. As a consumer-driven state with a limited industrial base, the destination-based nature of GST has led to a higher share of tax revenue accruing to the state, thereby strengthening its fiscal position.
Despite rate reductions under the GST 2.0 reforms introduced in September 2025, increased consumption appears to have contributed to the rise in overall tax collections, an update from the Office of the Commissioner, GST stated.
“The efforts in continued outreach activities by both State and Central GST formations to educate the business community on the importance of timely and ethical tax practices as well as the enhanced enforcement measures put in place have helped boost GST compliance in the state. Furthermore, digitalization of tax processes has improved transparency and streamlined tax filing for businesses, contributing to better compliance,” it added.