GUWAHATI: In a recent announcement, Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, praised the North Eastern states for their remarkable success in the collection and devolution of the Goods and Services Tax (GST).
However, challenges remain due to the region's borders with four countries and the presence of 25 functional Land Customs Stations (LCS), of which only 15 have electronic facilities.
As a result, a huge amount of drugs and foreign cigarettes are circulated in the market which goes unnoticed under the GST norms and revenues uncollected.
To combat smuggling effectively, Minister Sitharaman urged officials to expedite the process and ensure that the remaining LCSs are equipped with electronic facilities by December.
Speaking at the Investiture Ceremony held to confer the Presidential Award for 'Specially Distinguished Record of Service' to officers and staff of the Central Board of Indirect Taxes and Customs (CBIC) in Guwahati, the Finance Minister revealed significant achievements made by the eight northeast states in terms of GST collection.
According to the 2023 RBI report on state finances, the North Eastern states have collectively registered a compounded annual GST hike of 27.5 per cent.
Among these states, Assam stands out as the pioneer in adopting the GST Act. Just four days after the act was passed, Assam ratified it, leading to an astounding twelve-fold increase in tax collection.
Before the implementation of the GST, Assam's sales tax collection amounted to ₹558.26 crore, which has now soared manifold to ₹7,097 crore.
Similarly, Sikkim and Meghalaya have also achieved significant milestones in GST collection. Sikkim witnessed its collection surge from ₹263.5 crore to ₹3,036 crore, while Meghalaya's collection rose from ₹587.21 crore to ₹2,078 crore.
The Finance Minister highlighted the substantial improvements brought about by the GST system, benefiting not only the states but also the people at large.
The positive impact of GST has been evident, enhancing the overall economic landscape of the North Eastern region.
Sitharaman is currently on a two-day visit to Assam and Tripura, where discussions on further bolstering the region's economic growth are taking place.