Post-GST Structural Transformation in North-East India: The Evolving Economic Position of Arunachal Pradesh

Implementation of Goods and Services Tax (GST) in July 2017 is one of the significant fiscal reforms in India that has significantly changed the economic and social geography of indirect tax taxation. In the North-East (NE) area, which emphasizes tertiary sector, central transfers and a substantial informal economy, this transformation has begun a tortuous structural economic change. This paper discusses the structure transitions in the NE zone post-GST, concentrating on the position Arunachal Pradesh (AP). The research focuses on three central areas: the transition from a non-formal economy to a formal one, the service sector’s rapid growth and formalization, and the obvious changes in consumption that occur alongside uniform tax payment and specific rate rationalization. It suggests that the destination-based character of GST and the embedded compliance aspects has substantially bolstered AP’s own tax revenues, fostered measurable formalization and improved competitiveness in its core primary and tertiary industries of the country.