Thiruvananthapuram: The introduction of GST has influenced the revenue of the state and this unexpected impact called for the same review, said Finance Minister K n Balagopal.
Kerala has not received an increase in tax revenue with the introduction of the GST system in July 2017.
It is specifically regarding commercial tax collection, he said while inaugurating an interactive online session with the stakeholders ‘four years GST’, which is organized by the Financial Institute and Taxation (Gifts) on Wednesday.
Balagopal said that around 160 countries around the world migrated to the GST regime, but some countries -Unudate the US – have not applied them.
“I think this is because of the practical difficulties and systemic inefficiency of the tax system.
Even our government is aware of the deviation in the GST system is very late,” he said.
Serious problems Kerala faced with the financial front is extortion in tax collection.
Unfortunately, GST hasn’t helped reverse the situation.
We think otherwise when the new system is introduced, he added.
“Systemic deviations in GST implementation are the main concern due to reduced tax revenues.
This must be taken seriously.
The GSDP tax ratio of the country is lower than the pre-GST period.
Under the VAT system tax – the GSDP ratio is 16%; under 11% Now.
Consumers do not benefit through GST because prices soar contrary to previous projections.
Traders and industrialists complain about new systems and state governments do not benefit.
Therefore, repeated thinking in the case of GST cannot be avoided without any state not move forward, “he said.
Former Minister of Finance TM Thomas Ishak, who led the prime session, said all countries must put pressure at the center to extend GST compensation for five years.
“The state must be permitted to make a little change in the basic tariff of SGST,” he added.
The Secretary of the Additional Chief (Finance) of RK Singh shared his concern over a lower PAJA-GSDP ratio of Kerala.
The ideal ratio is 15%, but the state is far below that level.
Drarmila Mary Secretary Joseph (tax), Giridhar Pai (Commissioner, CGST), Rathhan U Kelkar (Commissioner, SGST), S Karthikeyan (Special Commissioner, SGST) also spoke in a session.
Gift director KJ Joseph delivered a speech.
About 200 plus traders, industrialists, tax practitioners and officials distributed their views in various sessions.
In the midst of dipping income, FM sits the GST system review
