Kerala would be the first state to be information technology prepared to implement the proposed Goods and Services Tax (GST), a survey conducted by KPMG has said.
The Centre plans to introduce GST and DTC (Direct Taxes Code) from April 1, 2011. While DTC would replace the Income Tax Act, GST would replace most indirect taxes at the central and state levels like service tax, excise duty, VAT, cess, surcharge and local levies.
“They have done their homework… (on GST) And moreover, Kerala does not have any industries. Therefore if GST is rolled out as planned by April 1, 2011, they will be the first in the country to be IT prepared,” the BSR and Company Partner and National Head of Litigation, Mr K.R. Girish, said about the KPMG report.
On the findings of the report, he said if the GST impact is taken into account, India would be well poised to attain the double-digit GDP growth.
About 88 per cent of respondents preferred to have single GST enactment both for Centre and states. About 86 per cent preferred cumulative standard rate for goods and services, he added.
Stating that 66 per cent of respondents believed that exempted services be notified in the proposed GST, he said, 55 per cent of the respondents have not accessed the impact after implementation of GST.
“In fact, quite of few people do not believe if it will come on April 1 (as announced),” he said.
With the impact of GST, 78 per cent of respondents felt they would be much impacted due to increase in tax on services. About 70 per cent felt that they were not adequately prepared for the new tax regime.
The survey covered 200 respondents from various industries. About 34 per cent of companies, which reported over Rs 1,000-crore turnover participated, in it.
The mode of conducting the study was ‘online’, Mr Girish said, adding that about 80 per cent of companies which have presence in more than one state had responded.
