CHENNAI: Tamil Nadu Finance Minister Thangam Thennarasu on Thursday welcomed the GST rate rationalisation reforms, including the exemption of individual life and health insurance services, but expressed concerns over the protection of the state’s revenue.
The minister, who represented the state in the GST council meeting, suggested either to continue the dispensation of Cess provision through a Constitutional amendment or increasing the bound rate of tax only for sin and luxury goods through an amendment to the GST Act, an official release said.
At the meeting, Thennarasu stressed the need to fully implement the report of the Committee of Officers on Integrated Goods and Services Tax (IGST) settlement to streamline the process, and the GST council agreed to implement the recommendations by December. The minister welcomed the automated mechanism for sanctioning provisional refunds for exports and the inverted duty structure. He also supported the simplified registration mechanism for small and low-risk businesses to enable ease of doing business.
Since the council has recommended extending the period of levy of compensation cess on sin goods for two to three months from October 31, Thennarasu expressed hope that Tamil Nadu’s suggestions would be considered in the near future.
Meanwhile, responding to AIADMK general secretary Edappadi K Palaniswami’s statement welcoming the GST reforms, Thennarasu questioned why the AIADMK leader had not urged the union government to ensure proper financial devolution or revenue opportunities to protect the state’s fiscal autonomy.
“Your views prove that you have become the voice of the BJP,” Thennarasu said. “Progressive states like Tamil Nadu deserve robust financial support to sustain their contributions to the nation’s growth. As a leader, why haven’t you demanded a clear commitment from the union government to protect the state’s interests? Raise your voice for Tamil Nadu’s rights and federal justice!”
He further wondered if the AIADMK leader was ignoring the financial welfare and rights of Tamil Nadu out of an “alliance of convenience” with the BJP ahead of the Assembly election.
‘GST 2.0 will Ensure economic growth’
Chennai: AIADMK general secretary Edappadi K Palaniswami on Thursday welcomed the GST council’s decision to shift to two slabs and provide relief on essentials, healthcare, agricultural inputs and insurance. He said the reforms would ensure simplicity, fairness and progress.
“The Next-Generation GST move will simplify compliance, boost consumer confidence, and support economic growth,” Palaniswami said in a post on X. Meanwhile, PMK founder S Ramadoss commended the centre for reducing taxes on essential commodities, saying the move will ease financial burden.