Nagaland records 25% GST growth in 2025-26, outperforming national average, driven by rising consumption and improved tax compliance.
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DIMAPUR — Nagaland has recorded a robust 25% growth in Goods and Services Tax (GST) collection in the financial year 2025–26, significantly outpacing the national growth rate of 8.3% during the same period.
According to a press release issued by the commissioner of Goods and Services Tax, Dimapur, the all-India GST collection crossed INR 22.27 lakh crore in 2025–26.
In contrast, Nagaland’s higher growth rate places it among the top-performing states in terms of GST expansion over the past year, it stated.
GST continues to remain the backbone of Nagaland’s own tax revenue, accounting for nearly 68% of the state’s total internal tax earnings in the previous financial year, it added.
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The department further attributed Nagaland’s latest surge to multiple factors, including increased consumption and improved tax compliance.
As a consumer-driven state with a limited industrial base, Nagaland has benefited from the destination-based structure of GST, which allocates tax revenue to the place of consumption rather than production, it stated.
“Despite the slashing of rates in the GST 2.0 reforms introduced in September 2025, rising consumption appears to have led to a boost in tax collection,” it added.