Arunachal Pradesh recorded the highest GST revenue growth among all Indian states and union territories for April 2025-March 2026, registering an overall growth rate of 27.5% compared to the previous financial year (2024-25). This is significantly higher than the national average GST growth of 6.4% during the same period. According to official data released by the finance ministry on 1 April, 2026, the state’s performance was unmatched, with GST collections by central tax formations increasing from Rs 407 crore in 2024-25 to Rs 526 crore in 2025-26.
The total GST collection (central and state combined) rose from Rs 1,201 crore to Rs 1,527 crore, marking an absolute increase of Rs 326 crore. Under central collections, CGST increased from Rs 150 crore to Rs 206 crore, while SGST collections rose from Rs 183 crore to Rs 246 crore during the same period. The growth rate of central tax formations stood at 29.4%, the highest among all states in this category, while state tax formations recorded a growth rate of 26.5%, placing Arunachal at the top in state-level GST performance as well.
This strong GST growth is significant as it reflects a substantial rise in the state’s formal economic activity and revenue base. Higher collections enhance the government’s fiscal capacity, enabling greater public spending on infrastructure, connectivity, and social sectors in a geographically remote and strategically important region. The performance indicates improved tax compliance and administrative efficiency to drive revenue gains.
To sustain and further improve GST performance, the state can focus on strengthening tax compliance through better digital monitoring, widening the taxpayer base by bringing more businesses into the formal economy, and improving coordination between central and state tax authorities. At the same time, efforts to enhance GST collections should be carefully balanced to avoid burdening small and unorganised businesses.