Pinning hopes on GST

Categories: GST Recent News
No Comments

At a time when conventional wisdom of the political establishment is decidedly against Goods and Services Tax (GST), the Economic Review pins its hope on the GST regime turning out to be beneficial to Kerala because of its profile of a consumer State.

“The GST is a destination tax and Kerala is a consumer State. Kerala has every reason to hope that the GST would fetch more tax revenue for the State and achieve the desired growth rate of more than 20% in tax revenues in the years to come. Moreover, considering the share of the service sector in the State GDP, the benefit of GST to the State is expected to be more than enormous,” the Economic Review noted.

Positive turnaround

The State is optimistic about a positive turnaround in its revenue growth once the problems in the GST system is resolved.

It is widely presumed that introduction of the GST would augment efficiency in economic activities and would benefit the State in the enhancement of indirect tax proceeds, it said.

At the same time, the Economic Review conveys its apprehension at the confusion and popular protest over rate changes, failure to ensure that the benefits are passed to the consumers, absence of e-way bill, changes in the threshold and attempts to tinker with the GST architecture.

Read more at: