Tamil Nadu Finance Minister Thangam Thennarasu has welcomed the GST rate rationalisation reforms decided at the 56th GST Council meeting, while voicing concern over protecting the state’s revenue.Mr. Thennarasu, who attended the meeting chaired by Union Finance Minister Nirmala Sitharaman in New Delhi, lauded reforms such as exempting individual life and health insurance services. He also supported simplified registration for small and low-risk businesses, and welcomed automated refund mechanisms for exports and inverted duty structures.
However, he urged the Council to safeguard state finances. He suggested either continuing the present cess provision through a constitutional amendment or raising the bound rate only on sin and luxury goods. He also pressed for full implementation of the Officers’ Committee report on IGST settlement before December 2025.
With the Council recommending extension of compensation cess on sin goods for up to three months beyond October 2025, Mr. Thennarasu expressed hope that Tamil Nadu’s proposals would be examined soon.
Turning to politics, the Finance Minister criticised AIADMK General Secretary Edappadi K. Palaniswami (EPS) for praising the GST reforms without demanding stronger fiscal devolution. He accused EPS of acting as “the voice of the BJP” ahead of the crucial Assembly elections.
“While you praise the new GST rules, why haven’t you demanded financial justice for Tamil Nadu?” Mr. Thennarasu asked. He stressed that progressive states like Tamil Nadu deserve robust fiscal support to sustain their role in national growth.
The Minister further said that the Union government should come forward with a clear assurance on protecting state revenues as India’s federal structure rests on strong states. “Without guaranteed fiscal space, states will find it difficult to implement welfare measures and development programmes,” he noted.
He also urged opposition leaders in Tamil Nadu not to compromise the state’s interests for political alliances. “History will not forgive those who sacrifice the financial welfare of the people for short-term gains,” he said, reiterating that fiscal autonomy and fair devolution are central to federal justice.