Tamil Nadu economic performance cannot be judged by gross GST revenue, says minister
Commercial Taxes Minister D. Logesh Tamilselvan argued that gross GST figures include amounts belonging to other states.
Tamil Nadu Commercial Taxes and Registration Minister D. Logesh Tamilselvan said on Tuesday that the state's economic performance should not be assessed solely through gross Goods and Services Tax (GST) collection figures.
According to The Hindu, the Minister's comments come following criticism from Opposition parties regarding the state's GST revenue growth rate falling below the national average under the TVK government.
Tamilselvan explained in a post on X that gross GST collection includes SGST, CGST, and IGST. He noted that the entire IGST collected cannot be considered revenue belonging to Tamil Nadu because it includes amounts attributable to other states.
The Minister stated that the state's actual GST revenue consists of SGST collections and the IGST settlement apportioned to the state. He added that tax rates on several commodities were reduced following GST rate rationalisation in September 2025.
Tamilselvan argued that the state's economic performance could not be assessed merely on a decline in gross collections due to these rate changes. He said Tamil Nadu's actual GST revenue registered 15% growth up to October in the current financial year.
The Minister further noted that the state recorded 8% growth in October alone.