CHENNAI: Former finance minister Thangam Thennarasu and DMK deputy general secretary and MP Kanimozhi Karunanidhi on Tuesday alleged that the state’s GST revenue had been declining continuously for three consecutive months, with September alone witnessing a 5% fall.
In a statement, Thennarasu said GST collections reflect the extent of economic activity in the state and argued that the continued decline in intra-state transactions raises concerns over the health of the domestic economy.
He pointed out that the decline had continued even after the reduction in GST rates. “Showing a 17% post-settlement increase and confusing people will not hide the truth,”
Thennarasu said, adding the government’s attempt to project a 17% increase in revenue after settlement to defend the government’s performance was misleading. The former minister said IGST revenue from goods received from other states and imports could not provide a comprehensive picture of Tamil Nadu’s economic growth.
Kanimozhi, meanwhile, criticised the government for claiming credit for the recent reduction in GST rates on certain commodities, calling it “absurd” to project nationwide GST rate cuts as the state government’s achievement.
“People have been pushed to a situation where they cannot even spend on daily necessities due to skyrocketing prices. The decline in purchasing power is reflected in the fall in TN’s GST collections,” she said.