Tamil Nadu’s Goods and Services Tax (GST) collections declined 12% to ₹5,243 crore in August 2020 from ₹5,943 crore in August 2019, data released by Union Finance Ministry on Tuesday showed. However, there was a recovery from a 24% fall in July 2020.
In August, more relaxations were granted in the State for commercial activities. In July, intense lockdown was continued in certain districts of Tamil Nadu. in July. Amid the COVID-19 lockdown, the State’s GST collections had declined 24% to ₹4,635 crore in July 2020 when compared to ₹6,084 crore in July 2019. In June 2020, the GST collections declined 15% to ₹4,976 crore from ₹5,881 crore in June 2019.
On Monday, Tamil Nadu had rejected the Centre’s proposal on GST compensation and stated that the Centre Government of India had a moral and legal obligation to pay the compensation for the shortfall in GST collections.