Chennai: The Tamil Nadu government on Monday reiterated its demand to the Centre to extend the GST compensation period for a further period of two years.
Delivering his customary New Year address to the State Assembly, Governor R.N.Ravi said several States. including Tamil Nadu, had joined the GST regime, foregoing their fiscal autonomy on the assurance that their revenues will be protected.
However, the anticipated revenues were not realized due to the drastic fall in revenues during the Covid pandemic, he said.
In such a scenario, the GST compensation regime has come to an end on June 30, 2022. Since the revenues of States are yet to fully recover from the impact of pandemic, this Government urges the Union Government to further extend the GST compensation period by at least two more years, he said
