Tamil Nadu sees highest growth in GST collections among comparable States in first half of 2024-25
Tamil Nadu has seen a 20.12% growth in State Goods and Services Tax Collections (SGST) in the first half of fiscal of year 2024-25, which is the highest growth rate among key comparable States for which data is available.
As per the provisional figures from the Comptroller and Auditor-General of India (CAG), Tamil Nadu’s State Goods and Services Tax (SGST) collection grew 20.12% to Rs.35,414.05 crore in the first half of the year 2024-25 from Rs.29,481.97 crore in the comparable period last year.
For the same period, Gujarat and Uttar Pradesh recorded a growth rate of over 14% in SGST collections, while Maharashtra registered a growth of 13.46% and Karnataka registered a growth rate of over 10%, as per the data.
The States’ goods and services tax (SGST) forms roughly half of states’ own tax revenue (SOTR), according to ratings firm India Ratings and Research. Notably, the year on year growth was strongest in Tamil Nadu, Assam, Maharashtra, Uttar Pradesh, Karnataka (growth range: 13.3%-50.8% year on year), the firm said in a recent report.
A senior government official from the Tamil Nadu Commercial Taxes Department attributed the growth to a slew of reforms on the administrative side and efforts to plug revenue leakage.
The Commercial Taxes department established a Tax Research Unit on December 30, 2022 and based on its review and recommendations the State has sorted out issues under the Integrated Goods and Services Tax (IGST).
