Tamil Nadu tax share may rise by Rs 2,000 crore

CHENNAI: Tamil Nadu expects an increase of ₹2,065.10 crore in tax revenue from the Centre compared to the previous year. As per the 14th Finance Commission, Tamil Nadu will get 4.023% as its share from the tax revenue collected by the Centre.

However, between the interim Budget and the full Budget presented on Friday, there is a decrease of ₹1,424.16 crore in Tamil Nadu’s tax share. Tamil Nadu should have received ₹33,978 crore from the Centre as per the interim budget.
It has now come down to ₹32,553.84 crore for the financial year 2019-20. Compared to the interim budget presented in February, Tamil Nadu will get less to the extent of ₹1,427 crore.
In the last financial year (2018-19), the state received ₹30,448 crore as its share from the taxes collected by the Centre.
“Maximum share of revenue from the taxes comes from corporate tax followed by CGST. Income tax and Central excise are the other revenue sources for the states from Centre,” said a senior finance department official.
Tamil Nadu is expected to receive ₹11,090 crore from corporate taxes alone and compared to last financial year there is an increase of ₹1,377 crore in this segment. Similarly, the share of CGST will be ₹8,864 crore, which is ₹386 crore more than last year receipt.
“The GST revenue may be more than the projection in the budget.
At present, the GST revenue collection is less, but during festival, we expect the revenue collection to go up,” said the official.
The government is also hopeful of getting inter-state GST dues from the Centre. “There is some delay in getting the GST share from the Centre, but we are hopeful of getting the dues. For last financial year, we are yet to get ₹5,454 crore,” said the official.
Overall, under the GST head, the Centre has to release ₹7,214 crore to Tamil Nadu, governor Banwarilal Purohit had said in the assembly earlier this year.
Out of ₹7,124 crore, ₹5,454 under inter-state GST and ₹455 crore as compensation both for the year 2017-18 and ₹1,305 crore as compensation for the financial year 2018-19. Government sources said they are confident of getting only ₹1,305 crore as the pending amount for the previous needs the Centre to introduce an appropriation bill which is mostly unlikely.