Agartala, 3rd November 2026 : With Tripura emerging as the country’s second-largest rubber-producing state after Kerala, the Central GST administration is looking at the sector as a promising source of revenue growth, while seeking to ensure greater tax compliance without creating difficulties for genuine traders.
Kul Prakash Singh, Chief Commissioner of the Guwahati Zone of CGST and Customs, made these observations while interacting with journalists during his visit to Tripura on Tuesday. He said the state’s rubber industry had remained an area with considerable untapped potential and that departmental initiatives were now focusing on strengthening coordination with the concerned stakeholders.
Singh said he took charge of the Guwahati Zone on April 22, with administrative responsibility covering seven northeastern states. His ongoing visits to the region were aimed at assessing the functioning of departmental offices, understanding the difficulties of the business community and interacting with officials of other government agencies.
Tripura was the last of the seven states he visited. Referring to the local CGST administration, he praised the changes introduced by Commissioner Kundan Yadav, the first regular Commissioner posted to the state after the formation of the Tripura Commissionerate following the introduction of GST in 2017. He said the Commissionerate had adopted systematic administrative practices and several measures to facilitate trade.
Highlighting the importance of rubber production, Singh said officials had been maintaining regular coordination with the Rubber Board and exchanging relevant information to improve monitoring of the sector. He said the challenge was to create a business-friendly environment while ensuring that tax revenue was not lost through irregularities.
Asked whether e-invoicing would be introduced in the rubber trade, he said the matter would be decided by the Government of India in consultation with the Government of Bangladesh. The implementation date would be communicated by the concerned Ministry once finalised.
On the issue of action against GST defaulters, Singh explained that immediate arrest was not the preferred course of action under the current framework. He said the emphasis was on establishing tax liability and recovering the amount due through the prescribed legal process. Prosecution, he added, would follow only after the necessary proceedings, including the issuance of a show-cause notice and confirmation of the demand. He also referred to the increase in the prosecution threshold from Rs 1 crore to Rs 5 crore.
Assessing Tripura’s revenue position, Singh said works contract services currently account for a significant share of GST collections. Government-funded infrastructure projects executed through departments such as PWD and Irrigation are among the major contributors. The rubber sector is another area that could generate additional revenue as its manufacturing, trading and distribution networks expand.
He observed that Tripura need not depend entirely on large-scale manufacturing to increase GST collections. As GST is a consumption-based tax, higher purchases of goods and services by residents and industries would also contribute to revenue growth. He expressed optimism that the state’s economic expansion and the establishment of more industries would improve its revenue prospects.
The Chief Commissioner also drew attention to the enforcement challenges arising from Tripura’s geographical position along the Bangladesh border. The state’s difficult terrain, forests and river networks, he said, create opportunities for illegal cross-border activities. However, he maintained that enforcement agencies were keeping a close watch on suspected smuggling routes.
Narcotics, gold, cattle and commercial commodities, including betel nuts and cumin, were among the items mentioned by Singh while discussing illegal cross-border movement. He said the CGST and Customs authorities were working with other agencies to prevent such activities through coordinated surveillance.
Delivering a message to the business community, Singh called upon traders and entrepreneurs to discharge their tax responsibilities honestly, stating that voluntary compliance was essential for the development of the state and the country.
At the same time, he assured traders that the department would not tolerate unnecessary harassment by its officers. Businessmen facing difficulties over departmental actions could approach the Commissioner, Additional Commissioner or other senior officials to seek redressal, he said.
Singh urged the business community to continue their commercial activities confidently, emphasising that honest payment of applicable taxes should remain their primary responsibility.
