CHENNAI: The Tamil Nadu government pointed to a 17% year-on-year increase in post-settlement GST revenue in September, arguing that the figure accurately reflected the revenue retained by the State, amid criticism from the Opposition parties over a decline in Tamil Nadu's gross GST collections.

According to senior officials, Tamil Nadu's post-settlement State GST (SGST) revenue rose to Rs 7,320 crore in September 2026 from Rs 6,270 crore in the corresponding month last year. During April-September, the revenue increased 16% to Rs 44,266 crore from Rs 38,119 crore in 2025-26.

The clarification comes amid criticism from the Opposition over the decline in gross GST collections. After increasing 4.4% in April, gross collections declined 15.1% in May, 1.9% in June, 1.2% in July and 1.4% in August. In September, collections fell 5% to Rs 10,188 crore from Rs 10,670 crore in the year-ago period.

Former Finance Minister and DMK leader Thangam Thennarasu had criticised the decline, questioning the TVK government's handling of the State's finances and economic activity.

Officials, however, said gross GST collections should not be treated as the State's actual GST revenue as they include IGST collected on inter-State transactions, which is subsequently settled among the States. Post-settlement SGST, comprising the SGST component and Tamil Nadu's share of IGST settlement, represents the revenue actually realised by the State, they said.

They also attributed the decline in gross collections to GST rate rationalisation implemented on September 22, 2025, under which tax rates for major sectors were reduced from 28% to 18%.

The officials said the 17% growth in post-settlement GST revenue in September and the 16% cumulative growth during April-September indicated an increase in Tamil Nadu's consumption-based GST revenue.