In the other semifinal, Manipur beat Meghalaya by an identical scoreline at the JLN stadium.
The final will be played on Wednesday while Arunachal Pradesh and Meghalaya will play the 3rd-4th classification match on Tuesday.
In the first semifinal, Mizoram scored in the 74th minute through substitute Lalfawkama who made no mistake in netting a cross ball from the left flank.
The other last-four match saw Manipur being rewarded for playing an attacking brand of football as Md Sohail found the net in the 50th minute of the game.