Nagaland has recorded the highest Goods and Services Tax growth in the country at 37 per cent during 2025–26, far above the national average, official data shows.
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DIMAPUR — Nagaland has emerged as the top-performing state in GST revenue growth, registering a 37% increase in collections during 2025–26 up to December, the highest among all states in the country, according to data released by the Ministry of Finance.
The growth is significantly higher than the national average GST growth of 6.8%.
Official data from the CGST Dimapur Commissionerate showed that despite the reduction of GST rates on over 375 goods and services under the GST 2.0 reforms implemented in September 2025, Nagaland’s tax collections surged.
The commissionerate attributed the robust growth to the destination-based nature of GST, which has benefited Nagaland as a consumer state with a limited industrial base.
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This mechanism has ensured higher tax accruals within the state, strengthening its fiscal position, it stated.
“The efforts to educate taxpayers and 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, digitalisation of tax processes has improved transparency and streamlined tax filing for businesses, contributing to better compliance,” it added.
Post-settlement figures show that Nagaland’s GST revenue performance remained stable even after inter-state adjustments, reflecting consistency in collections.
The CGST Dimapur Commissionerate stated that the continued focus on digitisation and taxpayer facilitation would remain key priorities to sustain growth momentum. Taxpayers have been advised to approach the GST Seva Kendra or Helpdesk for assistance and updates.