CHENNAI: Governor R.N.Ravi stated the Tamil Nadu government wants the Goods and Services Tax (GST) compensation regime to be extended for another two years. Ravi stated the GST compensation regime will terminate on June 6 when he spoke before the Tamil Nadu Assembly on Wednesday.
"The state was unable to achieve the substantial growth in tax collections that it had experienced during the VAT (value added tax) regime after the implementation of GST. This situation has been aggravated by the Covid epidemic "he stated
He stated that the state's revenues have yet to recover, and that if the compensation is not prolonged for at least two more years, it will have a negative influence on the state's finances. "As a result, our Government strongly urges the GST Council and the Union Finance Ministry to keep the GST compensation in place at least until June 30, 2024," Ravin added.