Nagaland has achieved the highest Goods and Services Tax (GST) revenue growth in India, with a 37% increase up to December of the 2025-26 fiscal year, significantly surpassing the national average of 6.8%. This performance is attributed to Nagaland's consumer-focused economy, the destination-based nature of GST, and enhanced taxpayer compliance through digitalization and educational initiatives. Despite rate reductions on numerous goods and services, the state's GST collections have shown consistent growth and stability.