Tamil Nadu urges implementation of IGST settlement report at GST Council meet

The Tamil Nadu government emphasised in the 56^th Goods and Services Taxes (GST) Council meeting in New Delhi that the report of Committee of Officers on Integrated Goods and Services Tax Settlement needed to be implemented in toto to streamline the IGST settlement process. The GST Council agreed to implement it before the end of December this year.

Tamil Nadu Finance Minister Thangam Thennarasu, who represented the State in the meeting, welcomed the GST rate rationalisation reforms, including the exemption of individual life insurance and individual health insurance services, an official release issued by the Tamil Nadu government said on Thursday (September 4, 2025). At the same time, he expressed concerns over the protection of the State’s revenue, it stated.

The Minister suggested either continuing with the present dispensation of cess provision through Constitutional amendment or to increase the bound rate of tax only for sin and luxury goods through the GST Act amendment. Mr. Thennarasu also welcomed the automated mechanism for sanction of provisional refunds for exports and inverted duty structure.

He supported the simplified registration mechanism for small and low risk businesses to enable ease of doing business. Since the Council has recommended to extend the period of levy of compensation cess on sin goods for two to three months beginning October 31 this year, Mr. Thennarasu expressed hope that the GST Council might examine the suggestions of the Tamil Nadu government in the near future.