DIMAPUR, AUG 10 (NPN): Nagaland’s tax revenue rose by Rs 170.47 crore, or 11.9%, to Rs 1,597.51 crore in the 2025-26 financial year, with GST accounting for nearly three-fourths of the state’s total tax collections, the department of state taxes informed Governor Nand Kishore Yadav on Monday.
According to a Lok Bhavan statement, Yadav reviewed the functioning and performance of the department at Lok Bhavan, Kohima, where officials presented its revenue performance, enforcement measures, achievements, challenges and future roadmap.
The department said total tax collection increased from Rs 1,427.03 crore in 2024-25 to Rs 1,597.51 crore in 2025-26. The increase was significantly higher than the Rs 68.05 crore growth recorded in the previous financial year.
During the first quarter of 2026-27, the department collected Rs 466.98 crore in taxes from April to June, Rs 23.96 crore higher than the corresponding period of the previous year.
GST remained the largest component of the state’s tax revenue, contributing Rs 1,181.88 crore, or 74%, of total tax collections in 2025-26.
The department said GST collections, comprising SGST and IGST, had risen from Rs 187.57 crore in 2017-18 to Rs 1,181.88 crore in 2025-26, representing a 530% increase. GST collection for the current financial year stood at Rs 450.35 crore up to July 2026.
The department also reported GST revenue growth of 37% up to December 2025 and 28.4% for the full 2025-26 financial year, saying both figures were higher than the corresponding all-India averages cited in its presentation.
The five-year revenue trajectory showed total tax revenue increasing from Rs 1,122.71 crore in 2021-22 to Rs 1,597.51 crore in 2025-26.
The department currently has 11,592 active registered taxpayers across four zones– Dimapur, Kohima, Mokokchung and Chümoukedima.
Its core functions include taxpayer registration, monitoring of timely filing and tax payments, scrutiny of returns, audits, enforcement, adjudication and recovery, appeals, refunds and tax awareness.
Officials highlighted several initiatives aimed at improving compliance and tax administration, including G-RAMS (GST Returns and Adjudication Management System), online TCC applications, online registration and payment of professional tax, and N-GAIN (Nagaland GST Analytics and Intelligence Network). Other measures include GST awareness campaigns, market surveys, compliance checks and the GST Registration Data Cleansing–Compliance Assessment & Market Survey initiative.
The department said enforcement drives had targeted fake invoices and registrations, while inventory checks and other compliance measures were being undertaken. A counter at the Railway Parcel Office has also been opened to monitor the movement of goods.
Coordination between Central GST and State GST authorities was also highlighted as an important component of enforcement.
Among the department’s achievements, officials highlighted the development of an in-house digital platform for professional tax and the recovery of Rs 17 crore in petroleum arrears as of August 6, 2026.
Nagaland was also ranked first in the Northeast and 16th nationally for the launch of Biometric Aadhaar Authentication Registration, according to the department.
The department, however, flagged manpower shortages, the need for continuous upgrading of information technology infrastructure and increasing workloads arising from taxpayer registrations and return filings.
The growing volume of GST data requiring scrutiny and risk assessment was also identified as a challenge.
Enforcement difficulties include identifying unregistered taxpayers and tax evasion, field verification of high-risk taxpayers, and monitoring works contracts, interstate transactions and other revenue-sensitive sectors.
The department also stressed the need to overcome what it described as historical resistance to tax payments and proposed promoting tax compliance as a people’s movement.
Under its “Vision 2063 and Beyond,” the department has projected tax revenue milestones of more than Rs 2,400 crore by 2030, Rs 5,000 crore by 2038, Rs 11,000 crore by 2047 and Rs 50,000 crore by 2063.
It identified seven key growth drivers for achieving the targets: expansion and restructuring of the department, state-of-the-art IT infrastructure, establishment of a State Revenue Board, training and capacity building, promoting tax compliance as a people’s movement, creation of a legal cell, and provision of basic conveyance and accommodation support for officers and staff.
The department said its long-term vision was to build a robust, transparent and dynamic revenue ecosystem that promotes voluntary compliance, drives innovation, strengthens governance and supports sustainable growth.
The review was part of the governor’s ongoing assessment of the functioning and performance of various state government departments.
The meeting was attended by finance commissioner Kesonyu Yhome and other officials of the state taxes department.
Tuesday, August 11, 2026