GST a success in NE, says Sitharaman

In an exemplary feat of fiscal management, the North Eastern states of India have emerged as trailblazers in the collection and devolution of the Goods and Services Tax (GST).

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Union Finance Minister Nirmala Sitharaman praised their accomplishments during the Investiture Ceremony, where the Presidential Award for ‘Specially Distinguished Record of Service’ was conferred upon officers and staff of the Central Board of Indirect Taxes and Customs (CBIC).

Assam, the first state to ratify the GST Act merely four days after its passing, experienced a staggering 12-fold increase in tax collection since its implementation. This remarkable growth is a testament to the success of the ‘One nation-one tax’ formula, which has not only boosted revenue but also exemplified the constitutional mechanism working cohesively between the Centre and the states.

According to the 2023 RBI report on state finances, the eight North Eastern states have witnessed an outstanding compounded annual revenue growth of 27.5 percent, predominantly driven by the surge in GST collection. This significant improvement has not only benefitted the states but has also had a positive impact on the people, propelling economic growth and development in the region.