Arunachal Pradesh recorded a 35.7 percent increase in GST collections from April to December 2025 compared to the same period in 2024, exceeding the national average growth rate of 6.8 percent during the same period.
The CGST Itanagar Commissionerate described the performance as a reflection of strong economic resilience, and improved compliance with targeted revenue enhancement strategies implemented by the state contributed significantly to the rise in collections. Improved tax administration and governance were cited as key drivers of the growth in collections coupled with progressive economic policies, ease of doing business, and digital, taxpayer-friendly initiatives expanding the tax base.
Increased GST revenue indicates higher business activity and expanding market participation across the state with sectors such as retail, services, tourism, transport, and hospitality showing sustained economic engagement.
Sustained growth will depend on whether increased revenues translate into long-term private investment, job creation, and sectoral diversification, particularly beyond retail and services.
On the other hand, the state government plans to further digitise taxation and improve revenue tracking, which are essential reforms, but the authorities must also ensure that such measure do not disproportionately burden small businesses in the state.