Telangana is now ready for the implementation of new GST Regime from 1st July from technology and preparedness perspective said Government official.
Somesh Kumar Revenue Secretary said that “We are ready. We have not asked for any postponement (of the launch date)”. He further added that “As far as technology and preparedness are concerned, even if you take migration…we are okay, we are at 80 percent migration to the new system, remaining we will complete soon, no issue on that,” he said.
The Government of Telangana has conveyed its issues in case of “some anomalies” in new taxation regime. Kumar said that “Earlier small and medium enterprises were exempted from central excise, now they have been added. That’s our main concern.”
He said that the taxation rates are very high in some areas. The state government has been recommending to implement a practical approach so that the burden of tax reduces and the GST compliance would be improved. Small and medium type of enterprises, specifically the granite sector which had “no incidence of central excise” and were doing business which attracted two per cent or 14.5 per cent tax will now be imposed with 28 percent tax under the new GST Regime, granite and stone.
Kumar said that “Because GST Compensation Act, whatever was our revenue in 2015-16, on the year-on-year basis, they (Central government) are giving us 14 percent increase. So, if we fall below that we will be given compensation, whatever is the gap.” So that the Telangana Government is okay with the new GST Regime. He also added that “Government is very confident we may not need compensation so far as the State is concerned, and we will be growing at the similar pace as we are growing today.”
He further added, One of the biggest tax reforms GST is finally going to roll- out from 1st July, the filing of first returns would be started from 10th August and the first payment in GST would take place from August 20 providing sufficient time under the new taxation structure.
While addressing the issues of trade and industry, Kumar said whenever changes are done, people are worried as “they don’t know what it means and how to do”. The state government communicated with industry and trade units and provide them “enough inputs”.
