Significant Growth in SGST Collections
Tamil Nadu has reported the highest growth in Goods and Services Tax (GST) collections among comparable states in the first half of 2024-25. The State Goods and Services Tax (SGST) collection increased by 20.12%, reaching ₹35,414.05 crore, up from ₹29,481.97 crore during the same period last year. This growth outpaces other major states, with Gujarat and Uttar Pradesh seeing over 14% growth, Maharashtra at 13.46%, and Karnataka achieving more than 10% growth.
Factors Contributing to Growth
The department also set up a Big Data Analytics Unit to analyze revenue losses and enhance scrutiny, leading to further revenue recovery. In addition, new Territorial and Intelligence divisions were created, and long-standing administrative issues, such as vacancies and promotions, were addressed. These efforts have significantly improved compliance among taxpayers.
The department also set up a Big Data Analytics Unit to analyze revenue losses and enhance scrutiny, leading to further revenue recovery. In addition, new Territorial and Intelligence divisions were created, and long-standing administrative issues, such as vacancies and promotions, were addressed. These efforts have significantly improved compliance among taxpayers.
Positive Outlook for the Second Half
Despite the absence of a festive period in the first half of 2024-25, which traditionally boosts sales and GST collections, Tamil Nadu has maintained strong SGST growth. The official expressed optimism for continued growth in the second half of the year, suggesting that the reforms and administrative measures will continue to yield positive results.
Context and Impact
SGST forms a significant portion of the states’ own tax revenue (SOTR), with Tamil Nadu’s robust growth indicating an overall strengthening of its fiscal position. According to India Ratings and Research, Tamil Nadu’s year-on-year growth in SGST was among the strongest in India, reflecting effective tax administration and compliance initiatives.
