The Kerala Goods and Services Tax department has started a GST registration drive in the State in a bid to bring more traders under the tax net and ensure tax returns are submitted in said time.
Finance Minister K.N. Balagopal, presenting the 2025-26 State Budget last February, had declared that State-level campaigns would be organised to bring traders under the GST system and to enhance the filing of GST returns.
As part of the drive, special tax squads will perform field surveys in all districts. They will visit businesses to raise awareness regarding the registration, the Additional Commissioner, State GST Department, cited.
The GST registration needs to be taken by the traders managing goods and having an annual turnover above Rs 40 lakh, and businessmen with a turnover exceeding Rs 20 lakh, whose businesses also include services.
Those traders that are under Section 24 of the GST Act dealing with ‘Compulsory registration in specific cases’ must register regardless of their annual turnover. The process of GST registration is an online system. On www.gst.gov.in, details can be accessed.
What is the reason that the Kerala Government want more Traders in the GST registration drive?
Under the Goods and Services Tax (GST) framework Government of Kerala is actively promoting the registration of more traders to expand the tax base and enhance compliance rates. A rise in the number of registered entities enhances clarity in commercial transactions, mitigates tax evasion, and maintains the precision of the revenue collection procedure.
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The state, by integrating additional traders into the GST system, aims to formalise sectors that at present are unorganised, promoting a level playing field where all businesses meet their tax obligations.
An increase in the GST registrations is important for the financial health of the state, which streamlines access to a larger allocation from the central GST pool. The same inflow of revenue can make the financial position of the state stronger. Improved registration permits for enhanced oversight, the implementation of advanced digital reporting systems, and the provision of targeted support initiatives.
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The same strategic initiative has the motive to strengthen the economy of the state by optimising revenue streams and allowing stronger long-term financial planning.
