Tamil Nadu actual GST revenue grew 15 per cent this year
Commercial Taxes and Registration Minister D Logesh Tamilselvan defended the state's economic performance against criticism from opposition leaders.
Tamil Nadu’s actual Goods and Services Tax (GST) revenue increased by 15 per cent in the current financial year up to October, Commercial Taxes and Registration Minister D Logesh Tamilselvan said on Monday.
According to The New Indian Express, Tamilselvan noted that revenue grew by 8 per cent in October alone. His comments came in response to criticism from former finance minister Thangam Thennarasu, former CM and DMK president MK Stalin, and AIADMK general secretary Edappadi K Palaniswami regarding a dip in GST collections.
Tamilselvan stated on social media that gross GST collections, which include the state’s SGST, the centre’s CGST, and IGST, should not be confused with the state's own revenue. He explained that not all IGST collected in Tamil Nadu goes to the state because it includes amounts for other states.
The minister clarified that the state's actual revenue consists of the SGST collected in Tamil Nadu plus the apportioned IGST settlement. He said that the September 2025 GST rate rationalisation, which reduced tax rates on various goods, had lowered gross collections.
Tamilselvan argued that a decline in gross collections does not indicate economic weakness. He said that evaluating the state's economic performance based only on gross GST collection figures is an incorrect method.