New Delhi :
In a recent announcement, Finance Minister Nirmala Sitharaman lauds the advantages of Goods and Service Tax (GST) for the North Eastern states, citing significant improvements in revenue collection.
The state of Tripura, in particular, has witnessed considerable benefits since the introduction of the new tax system in 2017.
Massive Increase in GST Collection
Addressing the inauguration of the new Goods and Services Tax (GST) Department building in Agartala, Tripura’s capital, Sitharaman reveals a remarkable surge in revenue collection.
The northeastern state’s GST collection reached Rs 982.50 crore during the financial year 2022-23,
an impressive jump compared to its Rs 4.61 crore share in Central Sales Tax collection during the financial year 2016-17.
GST as a Consumption-Based Tax System
Describing GST as a consumption-based tax system, Sitharaman emphasizes that states witnessing increased consumption will experience a corresponding rise in GST collection.
Since the implementation of GST in July 2017, Tripura has witnessed commendable revenue growth.
Necessity of GST Registration
Sitharaman underscores the importance of GST registration for businesses, highlighting that prominent companies prefer to engage only with registered entities.
Thus, embracing GST registration becomes vital for the benefit of businessmen.
GST’s Positive Impact
Sitharaman praises GST for bringing substantial reforms to the tax system, leading to benefits not only for the states but also for the general public.
Other North Eastern states, like Sikkim and Meghalaya,
have also experienced notable achievements, witnessing impressive growth in tax collection.
Assam’s Remarkable Growth
The Finance Minister shares data indicating the dramatic transformation in Assam’s tax collection.
Previously, the state’s sales tax collection was Rs 558.26 crore, but post-GST implementation, it has skyrocketed to an impressive Rs 7,097 crore.
With these revelations,
it becomes evident that the GST system has proven to be a game-changer for North Eastern states, fostering increased revenue and economic growth.