State deputy chief minister TR Zeliang on Friday asserted that Nagaland, being a consumer state, has greatly benefited from the implementation of GST, saying the state has witnessed “tremendous improvement” in sales tax revenue compared to earlier tax regime.
Zeliang said this at the at the closing function of the two-day “GST Refresher Training cum Stakeholders’ Meet”. The meet, organized by department of state taxes in association with goods & services tax network (GSTN), New Delhi, provider of IT Infrastructure and Services for Central and State Governments, taxpayers and other stakeholders for implementation of GST in India, concluded on October 25 at Niathu Resort, Chumoukedima.
Reflecting on the state’s journey on the introduction GST in 2017, Zeliang said that when the state government tried to introduce GST, there was hue and cry from the business communities asserting that was too early to apply GST in the state.
However, he said the state government somehow managed to adopt in the assembly. Stresing the importance of GST comprehension for businesses, Zeliang highlighted that it has become indispensable for small to medium business and large corporations.
The deputy chief minister also noted that a clear understanding of Input Tax Credit (ITC), a key feature of GST, can significantly impact a business’s finances if managed well. He added that proper documentation was essential to claim ITC effectively.
Acknowledging the rapid pace of digital advancements, Zeliang advocated for regular GST training and workshops to stay updated and acquainted with the new functionalities available in the GST Portal.
“From taxpayers to tax practitioners and government departments, each participant in the GST ecosystem needs an understanding of its mechanisms to avoid compliance penalties and to ensure smooth, error-free filings”, he stated.
Zeliang also lauded GSTN, New Delhi, for their support, saying it was a vital partner in helping Nagaland implement GST effectively. He said that this marked GSTN’s second visit to the state for training purposes. Zeliang pointed out that GSTN’s assistance has been pivotal for Nagaland.
Zeliang expressed optimism that more sessions would empower both tax authorities and local stakeholders. The deputy chief minister maintained that GST has brought about revolutionizing change in India’s indirect taxation system and also simplified compliance.
“The tax devolution and post-devolution revenue deficit grants that our state receives from the Centre, which is basically proceeds from taxes, has always been significant in running the affairs of the State,” he marked. He said that the state tax department has become the first among North Eastern States to implement Aadhaar-based Biometric authentication for registration in the state to prevent fake Registration and thereby check generation of fake invoices to evade tax.
Zeliang said the state government was ensuring that tax bases were further widened by bringing all liable dealers into the GST system and prevent evasion of tax in the state.
“Regulations provided under the Act should be utilized to plug loopholes and streamline the process of revenue collection. Toward this end, I strongly encourage tax officials to remain vigilant and ensure effective tax administration with transparency and accountability”, he stated.
Expressing confidence in the department’s leadership under advisor CAWD and taxes, Kudecho Khamo, Zeliang hoped that the training programme would enhance GST compliance in the state. He was confident that improved GST compliance would contribute to sustainable revenue generation and bring lasting, positive change to Nagaland’s financial landscape.
Delivering keynote address, advisor Khamo pointed out that the department of state taxes was one of the most crucial and best-performing departments in the state. He said the department was responsible for generating approximately 85% of the State’s Own Tax Revenue (SOTR).
Commending the department’s success, he urged the officials to remain vigilant and prompt in enforcing proper tax compliance. Khamo said that there was room for further improvement in revenue collection, as well as in establishing honesty and efficiency across the system.
Advisor also lauded the state taxes department for its achievement in becoming the first in the North East to implement Aadhaar-based biometric authentication for registration aimed at preventing fake registrations.
He said that the department was striving for seamless integration of Profession Tax, including developing an accessible online payment gateway, to simplify the tax-paying process for the business community.
Urging the department to continue its positive trajectory, the advisor called for regular education, sensitization, and updates for taxpayers, ensuring they were well informed and able to conduct their businesses efficiently.
Acknowledging the department’s infrastructural and logistical challenges, Khamo disclosed that projects, including a new directorate building in Dimapur have been undertaken to address the department’s acute office space issues.
On the shortage of conveyance for tax officials, he assured that the state government was actively examining solutions to secure basic transportation facilities.
Khamo expressed gratitude to deputy chief minister, the GST Network Team New Delhi, the business community, and taxpayers of Nagaland for their cooperation and dedication. He appealed to all stakeholders to continue their support in the journey towards Nagaland’s development and progress.
Earlier, the programme was chaired by special commissioner of state taxes, Y Mhathung Murry, short speech by Training Design & Delivery, GSTN, assistant vice president Satheshwaran Kalyanasundaram, and vote of thanks by commissioner of state taxes, Abhinav Shivam.