On 30 November 2025, during Day 1 of Parliament’s Winter Session 2025, the Lok Sabha approved Manipur Goods and Services Tax Amendment Bill 2025.
Parliament also approved supplementary demands for grants totalling a gross additional expenditure of Rs 1,32,268.85 crore for 2025-26, with a net cash outgo of Rs 41,455.39 crore primarily for subsidies on fertilisers, food, and petroleum.
The House also passed the Manipur Goods and Services Tax (Second Amendment) Bill-2025, introduced by Finance Minister Nirmala Sitharaman, to replace an October ordinance amid President’s Rule in the ethnic violence-hit state.
This aligns Manipur’s tax framework with national GST norms per the 56th GST Council decisions; Sitharaman highlighted benefits for traders and economic recovery, while BJP MP Shashank Mani endorsed it, though opposition protests over electoral issues caused session turbulence-the bill now awaits Rajya Sabha approval.
Fiscal Boost Amid Session Turbulence
The supplementary grants encompass 72 demands and one appropriation, partially offset by Rs 90,812.17 crore in savings, receipts, and token provisions for re-appropriations, ensuring fiscal discipline despite unforeseen needs.
Prime Minister Narendra Modi opened the session emphasising its role in national progress, noting GST reforms as trust-builders between government and citizens.
Disruptions from opposition demands on electoral bonds and Adani issues led to adjournments, yet key approvals proceeded, underscoring parliamentary resilience.
Key allocations prioritise subsidies: fertiliser support to aid farmers, food security enhancements, and petroleum subsidies to stabilise prices.
Sitharaman presented these as essential for economic stability without derailing the Union Budget. This net additional spending of Rs 41,455.39 crore reflects proactive governance in a year marked by global uncertainties.
Manipur GST Reforms: Key Provisions
The Manipur Goods and Services Tax (Second Amendment) Bill-2025 amends the 2017 Act to synchronise with central GST changes via the Finance Act 2025, merging tax slabs into 5% and 18% rates (40% on luxury items) for simpler compliance, higher revenue, and evasion curbs.
It introduces Section 11A for waiving SGST recovery on supplies following general practices, adds co-insurance/reinsurance activities to Schedule III (exempting them from tax), and inserts Section 74A for time-bound tax default resolutions from FY 2024-25.
Retrospective effects apply from 1 November 2024 for most provisions, with relaxations on input tax credit claims (FY 2017-2021), interest/penalty waivers (July 2017-March 2020), and reduced appeal pre-deposits.
Promulgated as an ordinance on 7 October 2025 under President’s Rule (imposed February 2025 amid ethnic clashes since May 2023), the bill enables SGST levy on extra neutral alcohol per GST Council nods.
Sitharaman stated: “Manipur’s GST framework needed urgent parity with national norms… benefitting traders and consumers alike,” in a Rs 5,000-crore economy reliant on agriculture and handlooms. BJP’s Shashank Mani affirmed its role in state revival.
Historical Context and Broader Implications
Manipur’s GST journey traces to the 2017 Act, with prior amendments like the first 2025 ordinance (June) replaced in August due to session lapses-now this second iteration addresses ongoing integration gaps.
Ethnic violence has crippled governance, prompting central interventions including Rs 2,898 crore extra budgetary support (Rs 1,667 crore capital, Rs 523 crore for camp rehabilitation, Rs 542 crore security).
These reforms aim to streamline tax administration, boost collections, and support recovery in a state under direct Union control.
The winter session builds on precedents like earlier supplementary grants (March 2025 batch), highlighting fiscal federalism’s role in crisis states.
By aligning with the 56th GST Council, it ensures uniformity, potentially easing business amid conflict. Critics note ordinance reliance signals urgency but raises oversight concerns.
The Logical Indian’s Perspective
The Logical Indian applauds these measures as strides towards transparent fiscal management and inclusive reforms, particularly empowering Manipur’s traders through simplified taxes that foster economic harmony and coexistence amid adversity.
By prioritising subsidies for essentials and state-specific alignments, they embody empathetic governance promoting peace, dialogue, and equitable growth across diverse regions.
Transparent processes, even in turbulent sessions, strengthen democratic trust and positive change.
