According to the media report, it is being observed that Tamil Nadu is one of the states in India which has received good revenue collection for the first time after the 18 months of GST implementation. The quite interesting part is that the state had not received the compensation from the Centre.
As per the data released in the Rajya Sabha, Tamil Nadu collected Rs Rs 34,589 crore in GST during the first 10 months of the fiscal year 2019-20, While, the state had collected Rs 24,907 crore which is slightly lower when compared to previous 8 months.
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A senior official stated, “Each month we are seeing not less than 8%-10% growth in GST revenue. This includes state GST as well as the state’s IGST share. The problem only in IGST adhoc settlement.”
Maharashtra is in the number one position and collected Rs 70,792 crore, while on the second positions are Uttar Pradesh and Karnataka. However, Tamil Nadu has secured the fourth position with respect to receiving the GST revenue collection. Overall collections may not tell the exact collections done however the compensation scheme that has been formulated by the Centre and the state calculates a 14% growth in GST revenue annually.
When the state received fewer revenue collections than the Centre has the responsibility to fulfil this gap. This time Tamil Nadu did better and amongst the top four in terms of growth as compared to other states like Punjab, Bihar, Himachal Pradesh and Uttarakhand.
Tamil Nadu officer stated that the government has to take some necessary actions to improve the tax structure. The government has to work upon application of GST e-way bill mechanism, targeted action on compliance verification, automation of business processes and enforcement based on risk assessment helps to increase the revenue collection.
