Union Finance Minister Nirmala Sitharaman on Friday said the Goods and Services Tax (GST) collection and devolution in the northeastern states has been a success,
Addressing the Investiture Ceremony of the Central Board of Indirect Taxes and Customs (CBIC), she said that the eight states in the region have seen a compounded yearly GST increase of 27.5 per cent, according to the 2023 RBI assessment on state budgets.
“Four days after it passed, Assam became the first state to ratify the GST Act, and since then, the amount of taxes collected has increased by a factor of 12 times.
The Goods and Services Tax is a successor to VAT used in India on the supply of goods and services. GST is a digitalized form of VAT where you can also track the goods & services. Both VAT and GST have the same taxation slabs
“Prior to the adoption of the GST, Assam collection Rs 558.26 crore in sales tax; now, it collects Rs 7,097 crore,” the Union Minister said, adding that Sikkim and Meghalaya have also achieved a great deal, with the former’s revenue rising from Rs 263.5 crore to Rs 3,036 crore and the latter’s from Rs 587.21 crore to Rs 2,078 crore.
According to Sitharaman, GST has brought about “tremendous improvement in the system that has ultimately benefited the people as well”.
There are 25 operational Land Customs Stations (LCS) in the northeast, of which 15 have electronic facilities.
The Union Minister also encouraged the authorities to make sure that by December, all LCSs will be equipped with computerised tools that will aid in detecting and preventing smuggling.
Sitharaman is on a two-day visit to Assam and Tripura.