Minister Thangam Thennarasu urges protection of States’ revenue in GST reforms

Tamil Nadu Finance Minister Thangam Thennarasu on Wednesday welcomed the proposed reforms in the Goods and Services Tax (GST) system but stressed that the financial resources of States should be taken into account while implementing them.

Participating in the meeting of the Groups of Ministers set up by the GST Council on Compensation Cess, Health and Life Insurance, and Rate Rationalisation in New Delhi, Mr. Thennarasu said States like Tamil Nadu have been implementing major infrastructure and welfare schemes, and tax reforms should not curtail the expenditure required for these programmes.

An official press release said, he demanded an extension of the Compensation Cess to offset potential revenue losses to the States arising from rate rationalisation. He also emphasised on safeguarding the financial interests of the States and assured that the Tamil Nadu government would extend cooperation with respect to rationalisation of GST.