GST ignores Manipur's realities: state Congress chief Keisham Meghachandra

Manipur Congress president Keisham Meghachandra on Friday said the Goods and Services Tax (GST) regime poses significant challenges for the state as its economic and infrastructural conditions differ vastly from the rest of the country.

In a post on X, Keisham said, "GST — A One-Nation Tax That Overlooks Manipur's Unique Realities. Manipur is likely to face grave difficulties following the passage of the amendment to the State GST in Parliament yesterday.

"The GST regime has posed significant challenges for states like Manipur, whose economic and infrastructural conditions differ vastly from mainland India."

Keisham continued, "As we assess the impact eight years on, it is evident that the 'one-size-fits-all' approach of GST does not serve the interests of small, landlocked, and socio-economically fragile states like Manipur."

Keisham explained that "GST stripped states of the power to levy independent taxes like VAT or entry tax. For a state like Manipur, this means a loss of financial flexibility at a time when local needs demand tailored economic policy."

GST – A One-Nation Tax That Overlooks Manipur’s Unique Realities . Manipur is likely to face grave difficulties following the passage of the amendment to the State GST in Parliament yesterday.

The implementation of the Goods and Services Tax (GST) in 2017 marked a major shift in…

— Keisham Meghachandra Singh (@meghachandra_k) August 8, 2025

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The Wangjing MLA further claimed that local industries, artisans, and farmers — many of whom earlier benefited from tax exemptions — are now burdened by uniform GST slabs and items like handloom products, bamboo crafts, and small-scale goods now fall under taxable categories, raising prices and reducing competitiveness.

Asserting that GST is an online-based system, Keisham argued that "many parts of Manipur still struggle with digital infrastructure and small traders, shopkeepers, and rural entrepreneurs are unable to comply due to poor internet connectivity and limited digital literacy."

He urged the Central government and GST council to review and amend the GST framework with a region-sensitive lens, restore fiscal space for small states, ensure timely compensation payments, introduce simplified compliance mechanisms for small traders and create differential tax slabs for economically backward and geographically isolated states like Manipur

"It is time the voice of Manipur is heard in the GST debate," he added.