CHENNAI: Tamil Nadu’s actual Goods and Services Tax (GST) revenue grew 15% in the current financial year up to October, and 8% in October alone, Commercial Taxes and Registration Minister D Logesh Tamilselvan said on Monday, hitting out at against the opposition’s criticism of the state’s economic performance and falling GST collections.
The TVK government had come under attack from former finance minister Thangam Thennarasu, former CM and DMK president MK Stalin and AIADMK general secretary Edappadi K Palaniswami over the dip in GST revenue.
Taking to social media, Tamilselvan said gross GST collections, which combine the state’s SGST, the centre’s CGST and IGST, should not be mistaken for the state’s own revenue.
Not all of the IGST collected in Tamil Nadu accrues to the state, as it includes amounts due to other states. The state’s actual GST revenue is the SGST collected within TN plus the IGST settlement apportioned to it, he said.
He added that the September 2025 GST rate rationalisation, which cut tax rates on several goods, had pulled down gross collections. A fall in gross collections alone, he said, could not be read as a sign of economic weakness.
“Assessing Tamil Nadu’s economic performance solely on the basis of gross GST collection figures would be an incorrect approach,” he added.