You know I rarely block people. But long ago I blocked T.V.Mohandas Pai because of his some hate tweets. He always keep belittling Tamil Nadu. It is surprising even elites of the society behaves like this.
I saw him a posting this message today on Twitter:
"TN has a bigger economy than Karnataka , the mystery is why does it collect less? It had not collected its budgeted taxes for last 3 years but shown huge growth in GDP! Are they counting GDP correctly?"
I don't know how much more he is going to get petty.
This is very basic which person of his stature should be definitely aware.
GST collections primarily reflect consumption (destination), not production (origin), while state GDP measures production within the state.
A lot of production is for all India markets or exports. Goods produced in Tamil Nadu are consumed in other states. GST credit flows to destination states, not Tamil Nadu.
GST is not a perfect proxy for economic size. It's better for measuring local demand and consumption patterns.
States like Tamil Nadu benefit from jobs, investment, and long term growth from production, even if GST appears relatively less.
This is a well known structural issue in Indian federal taxation. Manufacturing states have long argued for adjustments in tax devolution or compensation for this production consumption asymmetry.