States » EastPosted at: Jul 3 2025 8:16PM


Mizoram’s GST receipts dip by 29 pc in June compared to last year

Aizawl, July 3 (UNI) Mizoram's Goods and Services Tax (GST) receipts for June have witnessed a significant decline when compared to the previous year, as per data released by the Ministry of Finance (MoF).
The state's GST collection for June 2025 stands at Rs 30 crore, down 29% from Rs 42 crore in June 2024. The downward trend is not limited to a single month; the state’s GST receipts over the first three months of the 2025-2026 fiscal year have been considerably lower than the same period in the previous financial year.
Specifically, the State GST (SGST) figures show a drop of 28% in April, 26% in May, and 29% in June, according to the MoF's data.
An economist weighed in on the situation, saying, "While several northeastern states have seen a decrease in SGST collections in specific months, Mizoram stands out with a consistent decline
every month compared to last year."
An official from the state taxation directorate attributed the poor GST performance to slow-moving infrastructure projects, particularly those managed by the National Highway Infrastructure Development Corporation Limited (NHIDCL).
"The NHIDCL, which plays a pivotal role in road and highway construction, remains one of the
state's largest contributors to SGST. However, delays in project completion are resulting in lower
GST inflows," the official explained.
Additionally, the absence of central-funded projects, which used to supplement the state's annual budgets, has also contributed to the sluggish GST collection.
"The reduced scope of central projects has had an adverse impact on the overall GST receipts,"
the official noted.
Further complicating matters, a finance department source highlighted that developmental works carried out under the banner of various government departments have also contributed to the lower collection figures. Since government departments are not subject to GST, contractors working on such projects are often exempt from GST payments.
"Many of these works are broken down into smaller contracts under Rs 20 lakh and awarded to unregistered contractors, who are classified as 'work supervisors.' These contractors are not
required to pay SGST, which means either no collection or reduced collection," the official said.
As the state continues to grapple with this ongoing decline in GST receipts, the authorities are reportedly assessing ways to address the issues hindering growth in collections.
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