KOCHI: Despite widespread optimism about Goods and Services Tax (GST) improving the State’s income, traders in the city fear that the new tax regime, being rolled out on July 1, will hit Onam and the upcoming festival season sales.
“The GST rollout could have been postponed to January, as the traders have been demanding,” said Kerala Merchant Chamber of Commerce president V.A. Yusuf here on Thursday.
He added that traders welcomed the new tax regime but were of the view that the timing of its launch was wrong.
“There is also anxiety owing to lack of proper information on the impact of the new tax regime,” said another merchant.
“Sessions on GST began in the middle of May. However, even tax officials can’t explain the procedures under the new tax regime. This information lacuna is a cause for worry,” Mr. Yusuf said.
A city trader observed that merchants had considerably reduced taking in new stocks, thanks to lack of clarity on the new tax regime. “Moreover, traders are forced to dispose of the current stocks at the earliest. Most traders have decided to go in for new purchases after July 1,” he added.
Mr. Yusuf also pointed out that only 60 to 65% of traders had registered for GST, and that around 30 to 35% had not yet shifted to the new system.
Meanwhile, traders are looking forward to the meeting called by Finance Minister T.M. Thomas Isaac in the city on Saturday (July 1). Tax officials are expected to interact with traders at the meeting scheduled to be held at Indoor Stadium, Kadavanthra, at 3 p.m.
‘Revenue to go up’
But at the macro level, the State’s tax revenue is likely to go up by around 20%, said chartered accountant James Antony, citing a statement by the Finance Minister.
The 20% growth translates into nearly ₹8,500 crore, he added. In the long term, the benefit should be much more, he pointed out, underlining Kerala’s status as a consumer State.
