Comments
Tamil Nadu has reported a double-digit growth in GST revenue for the second consecutive month in an indication of continuing revival in the State’s economy, helped increased easing for lockdown and fall in Covid-19 cases during October.
The State’s total GST collection grew 14 per cent at ₹6,909 crore in October 2020 when compared with ₹6,109 crore in October 2019.
While other big States such as Maharashtra, Karnataka, and Uttar Pradesh managed with a single-digit growth in October, Tamil Nadu continued its double-digit growth momentum.
Last month, C Rangarajan, former RBI governor, who suggested growth measures for State government, told BusinessLine that the State’s economic activity would return to a normal level in a few months due to the rise in consumption of electricity and a few other things.
Tamil Nadu Chief Minister Edappadi K Palaniswami, while addressing a SICCI meeting a few days ago, said Tamil Nadu was recording a much better economic recovery than other States in the post-lockdown period. “Even during these challenging times, the State attracted more than ₹40,000 crore worth of investments, thereby becoming the top State in attracting new investments,” he added.
Note of caution
“October GST Collections relates to sales that happened in September. The total unlock with unrestricted movements, e-pass abolishment and public transport started from September 1 and many companies raised sales invoices in September by pushing out their finished products which they had planned in March itself. Therefore, we may have to wait for data of collection in November (which will be October sales) and December (which will be November sales) before we conclude that the increase in GST collection can be taken as ‘return of normalcy’ completely,” KE Raghunathan, Convenor of Consortium of Indian Associations, told BusinessLine.
“If we surpass ₹6,500 crore in November and December, we can confidently say that the economic rebound has happened. The second wave fear is the key part in making any conclusion,” he added.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.