Kerala's Leadership in GST Business Transition
Kerala has demonstrated significant progress in migrating businesses to the Goods and Services Tax (GST) system, outperforming the national average in 2017. Approximately 10% of its businesses completed the transition, with an additional 14% actively in the process. The state's services sector also showed strong participation, and the government proactively introduced amnesty schemes for VAT assessments. This highlights Kerala's commitment to the new tax regime.
Kerala's Impressive Business Migration to GST
Kerala has emerged as a frontrunner among Indian states regarding the transition of businesses to the Goods and Services Tax (GST) system. According to recent figures from April 2017, approximately 10% of businesses in Kerala have successfully completed their migration to the new tax framework, significantly surpassing the national average of around 3% at that time.
Further statistics indicate that while 10% of taxpayers in Kerala finalized their migration, an additional 14% had activated their accounts and were actively undergoing the transition process. Within the services sector, Kerala also showed strong engagement, with about 42% activating GST accounts and 14% concluding their migration, compared to a 6% national average for account activation in services.
The Kerala state government has also demonstrated proactive steps by declaring its commitment to promptly conclude Value Added Tax (VAT) assessments and reassessments, introducing amnesty schemes to facilitate this process. This commitment was highlighted in a report by The Hindu.