During the Zero Hour on the first day of the Seventh Session of the 14th Nagaland Legislative Assembly, at NLA hall, Kohima on 2nd September 2025, MLA, A. Pongshi Phom raised the importance of Goods & Services Tax (GST) collection in Nagaland. Phom stated that GST is the backbone of the State’s revenue and a major source of income to the State exchequer. Nagaland has the potential to develop industries in food packaging such as pickles, juices, and biofuels which he said would not only give employment opportunities but would also generate GST collections in the State.
There was a sharp difference in VAT and GST collections, he mentioned. State GST revenue recorded a remarkable rise with 104% year-on-year growth in June 2025, following a strong growth of 43% in April and 44% in May 2025. This growth could be attributed to internal reforms, skill development, enhanced enforcement measures and compliance by the business community.
He also suggested some areas in which GST can be introduced in order to boost the State revenue; commercial house rent, sand and stone chips, and unauthorized transporters.
He pointed out that amendment in GST laws is the need of the hour since the laws have not been reviewed after its introduction, and urged the DDOs in government departments to ensure that GSTR-7 (Monthly TDS return) be filed on time before insisting a Tax Clearance Certificate so that contractors and suppliers do not face unnecessary difficulties.
State GST Grievance Redressal Committee must be formed comprising of Government representatives, Trade Bodies, Tax Practitioners and Professionals, he suggested.
Leader of the House, Dr. Neiphiu Rio in his response said, to prevent leakages of GST deductions and collections, it was the State's top agenda. He added that his government has been trying to take corrective measures on GST implementation. He emphasized the importance of GST as it has been the State's main source of income, and mentioned that no government can survive without paying taxes to the government. Therefore, he urged the public and all the responsible citizens to make a habit of paying taxes on time.