As the Department of Revenue gears up for the rollout of the Goods and Services Tax (GST) from midnight on Friday, officials say though it is a win-win situation for the consumer State of Kerala, the department is ready to handle any hitches.
Addressing a press meet here on Friday, Chief Commissioner, Central Excise, Customs and Service Tax, Cochin Zone, Pullela Nageshwar Rao said consumers would benefit from the reversal of the cascading effect of the layered structure of Central and State taxes.
As the GST is consumption- and destination-based, goods manufactured elsewhere too would accrue revenue for the State. And the advantage for the consumer is that any product of the same quality manufactured anywhere in the country will cost the same, giving meaning to the GST slogan ‘One Nation, One Tax, One Market.’
The Central Processing Cell handling all registrations at the Office of the Chief Commissioner, Central Excise, Customs and Service Tax, Cochin Zone, would have a helpline for the State — 0484-2395481.
More Seva Kendras would be opened across the State in the coming days to help anyone with their queries on GST implementation, said Mr. Rao.
So far, the State has seen a migration of nearly 90% of the people under the commercial tax net that constitutes about 1.9 lakh registrations. New registrations have started trickling in, he added. While there are only 20 new registrations, the department is expecting a jump in the first week itself.
Sectorial groups
The department has formed 18 sectorial groups to address the issues that may come up. The hotel industry and pharmaceutical industry are probably two sectors that the department foresees more issues in implementation.
The government has provided two months for all those under the tax net to register. Businesses, small and big, through the GST Network would be able to enjoy a tax regime with minimal interface with the department personnel. It will help to bring in more discipline in doing businesses, Mr. Rao said.
Frequently Asked Questions have been prepared and answered on the Central Excise portal. Such queries have also been taken up sector-wise, he said.
While there were some problems in registering on the GST portal, the registration would be considered deemed even if there is reply to the application, he added.
Clarifying between Goods and Services, Additional Commissioner Mathew Jolly, Additional Director General, National Academy for Customs, Excise and Narcotics, said effectively household items which come under the Goods tag would enjoy the benefit of a GST tax regime of 15-16% down from 28-30%. However, the Services tag would be up from 15% to 18%.
GST Kerala will be formally launched on Saturday at a ceremony at Jawaharlal Nehru International Stadium, Kaloor, at 3 p.m. Finance Minister T.M. Finance Thomas Isaac would launch the event organised by the Central Board of Excise and Customs and Kerala Government. Minister of Education C. Raveendranath, K.V. Thomas, MP, MLAs, Mayor and other dignitaries will participate.
