GST rollout: For Karnataka, it’s ready, steady, go

Six lakh traders/firms enrol for GST

The Goods and Services Tax, which will go live from Friday midnight, is expected to bring in ease of doing business and transparency in the taxation system. Within specific sectors, though, there are apprehensions on how the process will pan out.

Karnataka, regarded a tax reform-oriented State, is set to implement the new taxation law with over six lakh firms/traders enrolling for GST. Telangana, Assam, Punjab, Rajasthan, and Kerala are the other States where enrolment has touched 100%. Three months’ time has been given for existing taxpayers to enrol. To provide legal back up, Karnataka unanimously passed the GST Bill 2017.

B.T. Manohar, chairman, State Taxes Committee, FKCCI, says: “GST will certainly bring down prices and check inflation. However, price fluctuations are sector specific. In the medium to long term, prices of a whole range of products and services should come down.” FKCCI has conducted 120 workshops in the last few months to create awareness on the new law.

‘Will reduce tax burden’

B. Praveen, secretary, KASSIA, too points out that uniform GST rates across India would reduce the tax burden. GST will reduce the cascading effect of taxes by integrating the tax systems of central and State governments. However, he said that firm owners are worried about possible glitches in software and the cumbersome procedures like filling 15 forms. “Unlike filling 2 or 3 forms in the current regime, filling 15 forms under GST will not be easy, particularly those that are not software friendly,” he says. The GST helpline of the Union Finance Ministry, he hoped, would provide answers to queries.

‘E-filing information’

GST mandates only e-filing of information relating to all compliances, starting from registration to filing of returns to paying taxes. However, in the long run, online filing will reduce errors, increase efficiency and eliminate human interface between the taxpayer and tax administrator, he adds.

Chattered accountants too opine that all one needs to do is enrol with the GST Network, fill the online forms and pay tax. There is no need hire a middleman “to maintain a cozy relationship with the tax officer,” says Prasanna Kumar, chattered accountant.

Chief Minister Siddaramaiah has said that Karnataka is expected to incur revenue loss and the Centre has promised to compensate it.