Finance Minister T.M. Thomas Isaac said here on Saturday that the State government would soon develop software to be supplied free to trade and industry for GST migration. The Minister, while launching the Goods and Services Tax regime at a function organised at the international stadium at Kaloor here, said the software would be ready within two months. It will be developed in collaboration with the National Informatics Centre.
The Minister told a large gathering of tax practitioners, tax officials and representatives of trade and industry that the State’s financial health would improve with the implementation of GST. Tax revenue would go up by 20%, he said and pointed out that the State deficit can be neutralised in about four years. The State’s tax revenue can go up by ₹4,000 crore this year, he added. The State’s tax revenue was increasing by about 10% at present while expenses were growing about 15%. But with the implementation of GST, tax growth will help the State finance improve.
Besides making the system more transparent, GST will end the era of bureaucrat-centric system and make trade and industry central to the tax regime. There will be less arbitrariness with GST migration being completed. Tax revenue will increase as leakages will be plugged under GST though overall tax rates could be down 80 to 85%.
Transition period
[Source”indianexpress”]