Tamil Nadu’s economic performance cannot be assessed merely by gross GST revenue: Commercial Taxes Minister

Tamil Nadu Minister for Commercial Taxes and Registration D. Logesh Tamilselvan. File

Amid criticism from Opposition parties that the State’s growth rate in Goods and Services Tax (GST) revenue had fallen below the national average under the TVK government, Minister for Commercial Taxes and Registration D. Logesh Tamilselvan said on Tuesday (November 3, 2026) it was incorrect to assess Tamil Nadu’s economic performance solely on the basis of gross GST collection figures.

In a post on X, the Minister said it was important to understand how GST figures were calculated. Gross GST collection includes SGST, the Union government’s CGST and IGST. However, the entire IGST collected cannot be considered revenue belonging to Tamil Nadu, as it also includes amounts attributable to other States.

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He said Tamil Nadu’s actual GST revenue comprises SGST collections and the IGST settlement apportioned to the State. Following the GST rate rationalisation in September 2025, tax rates on several commodities were reduced. Therefore, the State’s economic performance could not be assessed merely on the basis of a decline in gross GST collections, he argued.

He said Tamil Nadu’s actual GST revenue had registered 15% growth up to October in the current financial year, while recording 8% growth in October alone.

Tamil Nadu / Tamilaga Vettri Kazhagam / taxes and duties