Nagaland: Nagaland Deputy Chief Minister T.R. Zeliang has announced that the state has experienced substantial revenue growth since the rollout of the Goods and Services Tax (GST).
Speaking at the conclusion of a two-day “GST Refresher Training cum Stakeholders’ Meet” at Niathu Resort in Chumoukedima, Zeliang pointed to a marked improvement in sales tax collections compared to the previous tax framework, crediting GST with boosting the state’s fiscal health.
The event, organized by Nagaland’s Department of State Taxes in collaboration with the Goods & Services Tax Network (GSTN) from New Delhi, focused on educating local businesses and stakeholders on GST’s operations and advantages. Zeliang noted that while the business community initially resisted GST’s introduction in 2017, its subsequent acceptance has underscored its essential role in Nagaland’s economy.
The Deputy Chief Minister highlighted GST’s Input Tax Credit (ITC) mechanism, emphasizing that businesses that master ITC documentation can see significant financial returns. “Effective ITC management can greatly benefit businesses, but it demands accuracy in documentation,” he stated, underscoring the importance of error-free processes.
Zeliang also stressed the need for ongoing training to keep pace with digital changes in the GST framework, adding, “Everyone involved in the GST ecosystem—from taxpayers to government departments—requires an up-to-date understanding of its mechanisms to prevent compliance issues and ensure efficient, accurate filings.” He thanked GSTN for their essential role in supporting GST implementation, noting that this marked the network’s second collaboration with Nagaland.
A significant development highlighted by Zeliang was Nagaland’s pioneering implementation of Aadhaar-based biometric authentication for GST registration, a step he said will reduce fake registrations and enhance tax compliance. The Deputy CM expressed optimism that expanding GST coverage to all liable dealers in the state would help increase the tax base.
Advisor for the Department of State Taxes, Kudecho Khamo, delivered the keynote address, applauding the department for contributing approximately 85% of Nagaland’s State Own Tax Revenue (SOTR). He praised the department’s initiative in implementing biometric authentication for secure registrations and announced ongoing efforts to integrate Profession Tax with an online payment gateway, streamlining tax payments for local businesses.
Khamo also acknowledged the department’s need for infrastructure improvements, sharing plans for a new directorate building in Dimapur to address office space challenges. He affirmed the government’s commitment to providing additional resources, including transportation for tax officials, to ensure efficient tax administration.
The GST training session was a step towards enhancing financial literacy and compliance in Nagaland, a state that has quickly become a leader in GST adoption and tax innovation in the Northeast.
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