Tamil Nadu’s GST revenue growth slowed to 3% in October, trailing Kerala, Andhra Pradesh, Karnataka and Telangana, according to figures cited by former finance minister Thangam Thennarasu. The figures have triggered criticism from Thennarasu and former chief minister M K Stalin over the state’s economic performance under the TVK government.
Thennarasu said Kerala recorded 23% GST growth in October, followed by Andhra Pradesh at 24%, Karnataka at 18% and Telangana at 14%. Tamil Nadu’s 3% growth was significantly lower than the figures cited for each of its neighbouring states.
In a post on X, Thennarasu described the gap as a sign that Tamil Nadu needed an urgent push to strengthen domestic production. He also said that taxes collected on certain key goods imported into the state had contributed to the modest increase in overall tax revenue, while revenue linked to the state’s own production continued to decline.
Thennarasu characterised the pattern as an indication of wider economic stagnation. The claims were made in the context of the October GST figures cited in his post; the report does not provide a detailed sector-wise breakdown of Tamil Nadu’s tax collections or identify the specific goods that contributed to the increase in import-linked taxes.
Stalin separately criticised the state government’s economic performance, alleging that Tamil Nadu’s GST growth under the TVK government was below the national average. He also claimed that Korean investments worth Rs 1,614 crore, which were intended for Tamil Nadu, had shifted to Andhra Pradesh because of negligence by the state government.
Stalin further alleged that Guidance Tamil Nadu, the state agency responsible for attracting investments, had been sidelined because of what he described as the personal egos of individuals in the present administration. The report does not include a response from the state government, Guidance Tamil Nadu or the Korean investors regarding the allegation.
Stalin also accused Chief Minister C Joseph Vijay of focusing on campaigning in bypoll constituencies instead of addressing the state’s economic concerns. That criticism, like the claim about the investment shift, was made by Stalin and is not independently established in the supplied report.
The figures place Tamil Nadu’s October GST performance below the neighbouring states cited by Thennarasu and have opened a political dispute over domestic production, tax collection and investment facilitation. The report does not specify whether the figures represent year-on-year growth, nor does it provide the absolute GST revenue collected by each state.
The competing claims now centre on whether the weaker GST growth reflects a broader slowdown in Tamil Nadu’s production base and whether the alleged investment shift resulted from administrative decisions. The state government’s response and supporting tax and investment records were not available in the report.
