Chennai, Jan 5 (IANS): Tamil Nadu government wants the Goods and Services Tax (GST) compensation regime to be extended by two more years, Governor R.N.Ravi said.
Addressing the Tamil Nadu Assembly on Wednesday, Ravi said the GST compensation regime is coming to an end on June 6.
"After the introduction of GST, the state was not able to realise the high growth of tax collections that it had witnessed during the VAT (value added tax) regime. The Covid pandemic has further exacerbated this problem," he said.
He said the state's revenues are yet to recover and it would adversely impact the state finances, if the compensation is not extended for at least two more years.
"Therefore, this Government strongly urges the GST Council and the Union Finance Ministry to continue the GST compensation at least till 30.06.2024," Ravin said.