Thu Sep 04 08:28:53 UTC 2025: **Summary:**

The Tamil Nadu government, represented by Finance Minister Thangam Thennarasu, participated in the 56th Goods and Services Taxes (GST) Council meeting in New Delhi. They advocated for the full implementation of the Committee of Officers’ report on Integrated Goods and Services Tax Settlement to improve the IGST settlement process, which the GST Council agreed to implement by the end of December. While welcoming GST rate rationalization reforms, including exemptions for certain insurance services, the Minister expressed concerns about protecting the state’s revenue and suggested options for maintaining the cess provision or increasing tax rates on sin and luxury goods. He also supported automated refunds for exports and a simplified registration process for small businesses. He also hopes that the GST council will examine suggestions made by Tamil Nadu.

**News Article:**

**Tamil Nadu Pushes for GST Reform Implementation, Voices Revenue Concerns**

**CHENNAI, September 4, 2025** – Tamil Nadu Finance Minister Thangam Thennarasu today stressed the importance of streamlining the Integrated Goods and Services Tax (IGST) settlement process during the 56th GST Council meeting in New Delhi. The Minister advocated for the complete adoption of the Committee of Officers’ report on IGST Settlement, a move that the GST Council has agreed to implement before the end of the year.

While welcoming the recent GST rate rationalization reforms, including the exemption of individual life and health insurance services, Thennarasu voiced concerns regarding the potential impact on Tamil Nadu’s revenue. The Minister suggested maintaining the current cess provision through a constitutional amendment or raising tax rates specifically on sin and luxury goods through the GST Act.

“It is vital that we strike a balance between simplifying the GST structure and safeguarding the financial interests of the states,” Thennarasu stated in an official release.

The Tamil Nadu government also expressed support for automated provisional refund mechanisms for exports and inverted duty structures, as well as simplified registration processes for small and low-risk businesses, aimed at promoting ease of doing business.

With the Council recommending an extension of the compensation cess on sin goods, the Minister expressed optimism that the GST Council will consider the suggestions put forth by the Tamil Nadu government in future deliberations.

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