Tamil Nadu scored double-digit growth rates in collection of commercial taxes and registration during 2018-19. As for the gross collections of commercial taxes, the growth rate was 22.46% and in the case of registration of documents, 21.37%. The officials attribute increase in prices of petroleum products, covered under the categories of non-VAT and non-GST items, to the growth in the gross collections of commercial taxes. However, due to reduction in GST rates last year, the State experienced shortfall in GST collections vis-à-vis the earlier estimates. This is why it is being given the GST compensation, an arrangement that will continue for another three years.

Source: The Hindu May 04, 2019 19:25 UTC