India, Jan. 3 -- has recorded the highest GST revenue growth among all Indian states, with collections rising by 37% up to December 2025-26, according to data released by the Ministry of Finance.

This growth is well above the national average GST increase of 6.8%.

Data from the CGST Dimapur Commissionerate showed that Nagaland's collections increased despite the GST 2.0 reforms in September 2025, which reduced rates on more than 375 goods and services.

Officials attributed the strong performance to the destination-based nature of GST, which benefits Nagaland as a consumer-focused state with a limited industrial base. This system ensures higher tax accruals within the state, strengthening its fiscal position.

According to officials, in...