Manipur Pradesh Congress Committee (MPCC) President Keisham Meghachandra has expressed serious concern over the Goods and Services Tax (GST) framework, stating that it poses significant challenges to a state like Manipur, whose economic and infrastructural context is vastly different from the rest of India.
Taking to social media platform X on Friday, Meghachandra commented that the GST system—designed as a “one-nation” tax—fails to account for the specific needs and realities of smaller, landlocked, and economically fragile states like Manipur. He cautioned that the state is likely to face mounting difficulties following the recent amendment to the State GST passed in Parliament.
Reflecting on the eight years since GST was rolled out, Meghachandra argued that the uniform tax structure does not suit states with limited resources and distinct developmental challenges. “The ‘one-size-fits-all’ approach clearly disadvantages states like ours,” he said.
He also criticised the way GST stripped states of their authority to levy independent taxes such as VAT and entry tax. In the case of Manipur, he said, this has resulted in reduced fiscal autonomy at a time when local economic conditions demand customised policies.
The Wangjing MLA pointed out that local industries, including traditional artisans, handloom weavers, and small farmers, have been disproportionately affected. Many of these groups had previously benefited from tax exemptions, but under the current GST regime, items such as handloom products, bamboo crafts, and other small-scale goods are now taxed—driving up prices and undermining competitiveness.
Meghachandra further argued that the digital nature of GST implementation has created additional barriers. In a state where many areas still lack stable internet access and digital literacy remains low, small traders and rural entrepreneurs are struggling to comply with GST regulations, he said.
Highlighting the broader implications, he remarked that applying the same tax rates across metropolitan cities and remote hill districts disregards the logistical and economic difficulties faced in regions like Manipur. He said the GST regime, as it currently stands, fails to consider the Northeast’s unique socio-political, economic, and geographic challenges, leading to feelings of exclusion and economic marginalisation.
The Congress leader called upon the Central Government and the GST Council to urgently re-evaluate the GST structure with a more region-sensitive perspective. He urged them to restore fiscal flexibility to small states, ensure timely release of compensation payments, simplify compliance procedures for small businesses, and introduce variable tax slabs that reflect the unique needs of underdeveloped and remote states like Manipur.
“It’s high time Manipur’s voice is recognised in the national GST discourse,” Meghachandra said.