Tag: Tamil Nadu tops the table in growth of SGST collections

Precision Technology Center ▪ Chief Minister Stalin inaugurated the Precision Engineering Technology Center. ▪ The government announced that a Mega Cluster scheme worth Rs. 100 crores will be implemented in 5 locations across Tamil Nadu to enhance the production capabilities and encourage innovations of micro, small and medium enterprises, and to help them enter emerging industrial sectors. ▪ According to this plan, a Precision Manufacturing Cluster was planned to be established in Thirumudivakkam Industrial Estate in Kanchipuram district of Chennai region, in collaboration with entrepreneurs' association. This center is considered a hub for creating precision engineering parts used in autonomous vehicles, machinery, and electrical and electronic equipment. ▪ For the first time in South India, a Precision Engineering and Technology Center has been established at the Thirumudivakkam SIDCO Industrial Estate. Tamil Nadu tops the table in growth of SGST collections ▪ Growth in SGST Collections: Tamil Nadu saw a 20.12% growth in State Goods and Services Tax (SGST) collections in the first half of 2024-25, reaching ₹35,414.05 crore from ₹29,481.97 crore in the previous year. ▪ Top Performer: This growth rate is the highest among key comparable states, with Gujarat and Uttar Pradesh recording over 14% growth, Maharashtra 13.46%, and Karnataka over 10%. ▪ SGST Contribution: SGST accounts for roughly half of the States’ own tax revenue (SOTR). ▪ Key Growth States: Tamil Nadu, Assam, Maharashtra, Uttar Pradesh, and Karnataka showed significant year-on-year growth (13.3%-50.8%). State Goods and Services Tax (SGST) ▪ SGST is a tax applied within the GST framework on transactions within a state. ▪ It is imposed by the state government where the goods or services are consumed, making it an intrastate tax. ▪ SGST is regulated by the state's SGST Act of 2017 and is subject to periodic revisions. ▪ The introduction of SGST consolidated various…