State tops in GST reliance, Nagaland follows
Source: Chronicle News Service

Imphal, February 01 2025: Manipur has emerged as the highest GST-reliant state in the country, with 78 per cent of its revenue receipts generated from the Goods and Services Tax (GST), according to Economic Survey Report 2024-25 published on Friday.

Closely following Manipur, Nagaland reported a 72 per cent reliance on GST, highlighting a similar taxation pattern in the region.

Mizoram and Sikkim's share of central taxes is grouped under "Other Taxes and Duties�, reflecting a distinct fiscal approach in these states.

Meanwhile, Maharashtra, Tamil Nadu, and West Bengal were the top contributors in stamps and registration, sales tax, and state excise duties, respectively.

Odisha recorded the highest share of nontax revenue in its overall resource receipts (ORR), with 49 per cent.

Manipur, along with Arunachal Pradesh, Sikkim, and Mizoram, was identified as having a notable share of capital outlay as a percentage of revenue expenditure over the past five years.

This indicates a significant push towards infrastructure development and long-, term investments in the region.

Additionally, Arunachal Pradesh's subsidy expenditure is included under "Other Revenue Expenditure�, signifying a different fiscal strategy that prioritises public welfare schemes.

Despite the heavy reliance on GST revenues, Mizoram and Sikkim were not included in certain financial assessments, suggesting variations in data availability and fiscal reporting within the Northeast.

The data underscores a divergent economic trajectory among the north-eastern states, with Manipur and Nagaland heavily relying on GST, while others such as Arunachal Pradesh and Mizoram focus on alternative revenue models.

This trend raises questions about the sustainability of tax-based revenues in smaller states and their dependency on central tax devolution.

In the period from April to November 2024, Goods and Services Tax (GST) has solidified its position as the primary revenue source for 23 Indian states.

The Economic Survey stated that the introduction of GST in July 2017 brought a major transformation to India's indirect tax structure, aiming to establish a unified and streamlined taxation system nationwide.

By simplifying procedures, it has enhanced the ease of doing business, accelerated digitalisation efforts, and strengthened revenue collection.

The Survey also underscored GST's role in simplifying the tax structure in the realestate sector.

It noted that the unified tax system across states has made real estate transactions more transparent, promoting proper invoicing and documentation while reducing tax evasion.

Additionally; the Economic Survey highlighted the financial benefits for states maintaining a revenue surplus, often associated with higher capital expenditure.

During the April-November 2024 period, 11 states reported a revenue surplus, demonstrating the positive impact of the GST regime on state finances.

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