State report · Finance Department, Government of Tamil Nadu · 2021-08

White Paper on Tamil Nadu Government's Finances

This white paper from the Tamil Nadu government set out the state's fiscal position for legislators and the public. Its section on commercial taxes traces how much the state earned from goods now under GST, compared with the size of its economy, before and after the change. A separate section covers GST compensation due to the state and amounts received as back-to-back loans in place of compensation. It is one of the clearest official accounts from a large producing state of what GST means for its revenue.

Read the official report →All GST reports

Key findings and recommendations

  • Tax from commodities now under GST peaked at 3.25 per cent of GSDP in 2012-13 and fell to about 2.12 per cent by 2019-20.
  • The paper lists GST compensation due to Tamil Nadu and amounts received as back-to-back loans in place of compensation.
  • It flags the state's reliance on compensation, and its concern about losing that support after 2022.

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