Intro:
The Tamil Nadu Congress Committee president has strongly criticised the Central Government over three key issues: GST policy, the proposed delimitation exercise, and the recent Tamil Nadu conference led by Union Minister L. Murugan. These statements have sparked political debate and raise serious questions about fiscal federalism and regional representation.
What Did the Congress President Say?
In a press briefing this week, TNCC President K. Selvaperunthagai accused the BJP-led Centre of:
- Unfair GST treatment towards Tamil Nadu and southern states
- Using delimitation to reduce South India’s political weight
- Politicising Tamil culture through Union Minister Murugan’s recent state conference
GST Disparity: The Heart of the Criticism
Tamil Nadu’s Concerns on GST:
- Revenue loss post-GST: Tamil Nadu, a manufacturing-heavy state, claims it lost fiscal autonomy after GST replaced state-level taxes.
- Delayed compensation dues: The state alleges delays in GST compensation payouts from the Centre.
- Inverted duty structures: These have allegedly hit MSMEs and local industries in TN, leading to higher input taxes than output credits.
Legal Reference: Article 279A of the Constitution governs GST Council decisions. However, states like Tamil Nadu feel their dissent is ignored in council resolutions.
Expert View:
“GST reform was meant to simplify taxes, but the Centre must address genuine federal concerns—especially for net-contributor states like Tamil Nadu,” says a Chennai-based indirect tax expert.
Delimitation Fears: Will South Lose Political Power?
What Is Delimitation?
- It refers to redrawing the boundaries of Lok Sabha and assembly constituencies based on population changes.
Why the Opposition in Tamil Nadu?
- Southern states have lower population growth (due to better healthcare and education).
- Delimitation based on new population data may reduce seat share for southern states and increase seats for the Hindi belt.
- Congress alleges this is an attack on federal balance and “punishes” states for population control.
Murugan’s Conference: Cultural or Political?
Union Minister L. Murugan recently hosted a conference in Tamil Nadu highlighting Tamil heritage. The TNCC claims:
- It was a politically motivated event, not a genuine cultural celebration.
- The Centre is using Tamil identity for electoral gains while ignoring real development issues.
Summary
Tamil Nadu Congress slammed the Centre over GST policy, fear of southern seat loss in delimitation, and cultural politicisation by Union Minister Murugan. The state demands fair GST treatment and opposes any move to dilute South India’s political representation under the guise of electoral reform.
FAQs
Q1. Why is Tamil Nadu opposing the GST regime?
Because it believes the GST system eroded its tax autonomy and caused revenue shortfalls.
Q2. What is the issue with delimitation in 2026?
Southern states may lose Lok Sabha seats due to their lower population growth, causing political imbalance.
Q3. What is the role of the GST Council?
The GST Council recommends rates and laws, but its decisions are not always unanimously accepted by all states.
Final Take:
The issues raised by Tamil Nadu Congress—especially on GST federalism and political representation—require deeper Centre-state dialogue. Fiscal reforms must balance equity and efficiency, ensuring states like Tamil Nadu are not short-changed.