Tamil Nadu GST growth slows to 3 per cent in October
The state's revenue growth trailed neighbouring states as political leaders debated the impact of imports on the local economy.
Tamil Nadu recorded a 3 per cent increase in Goods and Services Tax (GST) revenue in October, according to reports by Urban Acres, Moneycontrol and Financial Express. This growth rate was lower than that of neighbouring states, including Kerala at 23 per cent, Andhra Pradesh at 24 per cent, Karnataka at 18 per cent and Telangana at 14 per cent.
Former finance minister Thangam Thennarasu stated on X that the modest rise in the state's tax revenue was supported by taxes on imported goods, while revenue from local production continued to fall. He suggested this trend indicated economic stagnation and called for increased domestic production.
DMK president and former chief minister M K Stalin criticised the economic performance under the TVK government, claiming growth was below the national average. Stalin also alleged that Rs 1,614 crore in Korean investments intended for the state had moved to Andhra Pradesh due to government negligence.
Stalin further accused Chief Minister C Joseph Vijay of prioritising bypoll campaigning over economic issues and claimed the investment agency, Guidance Tamil Nadu, had been sidelined. The state government has not responded to these allegations.
Nationally, gross GST collections rose 22.9 per cent year-on-year to Rs 2.31 lakh crore in October, the fastest growth in over four years. This increase was largely driven by a 42.2 per cent surge in import revenues, while domestic GST revenues grew by 15.8 per cent to Rs 1.59 lakh crore.