Guwahati: Nagaland has recorded the highest GST revenue growth among all Indian states, with collections rising by 37% up to December 2025–26, according to data released by the Ministry of Finance.
This growth is well above the national average GST increase of 6.8%.
Data from the CGST Dimapur Commissionerate showed that Nagaland’s collections increased despite the GST 2.0 reforms in September 2025, which reduced rates on more than 375 goods and services.
Officials attributed the strong performance to the destination-based nature of GST, which benefits Nagaland as a consumer-focused state with a limited industrial base. This system ensures higher tax accruals within the state, strengthening its fiscal position.
According to officials, initiatives to educate taxpayers and enforce compliance have contributed to stronger GST adherence in the state.
Officials also noted that digitalisation of tax processes has enhanced transparency and simplified filing for businesses, supporting compliance.
Post-settlement figures indicate that Nagaland’s GST performance remained consistent even after inter-state adjustments, demonstrating stability in collections.
Officials at the CGST Dimapur Commissionerate said that continued focus on digital services and taxpayer facilitation will be essential to sustain growth momentum.