Chennai: Tamil Nadu recorded only three percent year-on-year growth in gross Goods and Services Tax (GST) collections in October—reaching Rs 11,661 crore as against Rs 11,298 crore in the same month last year—even as India’s overall GST revenue jumped by 22.9 percent to a strong 2.31 lakh crore in the same period.
According to official data released by Union Ministry of Finance, Tamil Nadu lags behind neighbouring states like Andhra Pradesh with GST revenue growth of 24 percent, Kerala with 23 percent, Karnataka with 18 percent, Telangana with 14 percent, and Maharashtra with 13 percent. National domestic GST collections rose 15.8 percent, while revenue from imports surged 42.2 percent, powering the overall rise.
Tamil Nadu’s figure was also among the weakest among major states.
Opposition leaders say that the state is seeing a weak economic growth under the Tamilaga Vettri Kazhagam (TVK) government. Dravida Munnetra Kazhangam (DMK) president and former chief minister M.K. Stalin said that Tamil Nadu’s GST growth has fallen well below the national average. “The economic growth of Tamil Nadu has been completely buried under the TVK rule,” he posted on social media platform X.
காலையில் கடந்து வந்த இரு செய்திகள்:
1) GST வருவாய் வளர்ச்சியில் தேசிய சராசரிக்கும் கீழே த.வெ.க. ஆட்சியில் தமிழ்நாட்டின் வளர்ச்சி புதைக்கப்பட்டிருக்கிறது.
2) தமிழ்நாட்டுக்கு வர வேண்டிய 1,614 கோடி ரூபாய் கொரிய முதலீடுகள் த.வெ.க. அரசின் அலட்சியத்தால் ஆந்திராவுக்குச் சென்றுவிட்டன.… https://t.co/cf73K0lNQ9 pic.twitter.com/ITEUmQOB2r
— M.K.Stalin (@mkstalin) November 2, 2026
Former minister and DMK leader Thangam Thennarasu highlighted the gap with neighbouring states, noting that Tamil Nadu had earlier recorded contractions of one percent in August and 5 percent in September. “It is concerning that Tamil Nadu, once among India’s leading states in economic growth, continues to witness a decline under the TVK government,” he said.
He said that overall tax revenue growth is seen only from import-related tax revenues, and not from tax revenues earned through the state’s own production. When compared to the revenue growth of neighboring states, acknowledging the fact that we are lagging behind significantly, the government must strive to enhance the state’s own production and sales to pave the way for economic improvement and job opportunities, rather than trying to whitewash a wound, which serves no purpose, he added.
Former state BJP president K. Annamalai described the single-digit growth, coming after several months of contraction, as inadequate despite the festive season, extended school holidays and higher tourist inflows. He questioned the government’s fiscal priorities and ability to generate sustainable revenue.
Finance minister Marie Wilson rejected the criticism, arguing that gross GST figures do not accurately reflect the state’s actual revenue. He told the media on Tuesday that GST growth had moved from a negative trend to a positive 3.2 percent in October, with post-settlement growth at eight percent. He attributed the improvement to policy initiatives under Chief Minister C. Joseph Vijay and accused the Opposition of focusing only on negative narratives.
Commercial Taxes and Registration Minister D. Logesh Tamilselvan said that Tamil Nadu’s post-settlement GST revenue, which is the amount the state actually retains after IGST apportionment had grown 15 percent during the current financial year up to October, with an eight percent rise in October alone.
He explained that gross collections include SGST, CGST and IGST, but the full IGST collected in the state does not belong to Tamil Nadu as it is later settled among states. “Judging Tamil Nadu’s economy solely on the basis of gross GST collections is not the right approach,” the minister said. He also pointed to the impact of GST rate rationalisation implemented in September 2025, which reduced rates on several commodities.
(Edited by Nardeep Singh Dahiya)
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