Positive growth recorded first time after the lockdown

Positive growth recorded first time after the lockdown

Tamil Nadu’s Goods and Services Tax (GST) collections rose by 15% to ₹6,454 crore in September 2020 from ₹5,616 crore in September 2019, data released by the Union Finance Ministry on Thursday showed.

The GST collections rose for the first time after the COVID-19 lockdown imposed in March. More relaxations were granted in the State for commercial activities in September.

The collections declined 24% to ₹4,635 crore in July 2020 as against ₹6,084 crore in July 2019. In June, the collections declined 15% to ₹4,976 crore from ₹5,881 crore in June 2019.

In August 2020, it had declined 12% to ₹5,243 crore from ₹5,943 crore in August 2019.

One of the key issues has been Centre providing GST compensation to States.

Tamil Nadu rejected the Centre’s proposal on GST compensation and stated that the Government of India had a moral and legal obligation to pay the compensation for the shortfall in GST collections. The GST compensation due for Tamil Nadu was ₹11,269 crore for FY 2020-21 (April - July).