Kerala records 75% increase in average monthly GST revenue compared to 2017-18

Kochi: Six years after the implementation of the unified Goods and Services Tax (GST), Kerala has witnessed an increase in its average monthly revenue, reaching Rs 3,000 crore. This marks notable growth from Rs 1,700 crore recorded in 2017-18, representing a remarkable 76 per cent increase in monthly GST revenue.

The state tax department has also reported a reduction in tax evasion compared to previous years. Reforms such as e-invoicing and e-way bills have played a crucial role in curbing tax evasion, as stated by the department.

Doubling of national income

GST was introduced on July 1, 2017, with an average monthly revenue of Rs 89,885 crore in 2017-18 nationally. In 2022-23, it is projected to reach Rs 1.5 lakh crore.

In the current financial year, April recorded impressive GST revenue of Rs 1.87 lakh crore, marking the highest ever collection in a single month.

Taxpayers face challenges

Despite the progress made, taxpayers continue to express dissatisfaction with the union government's failure to fulfil its initial GST promises. The establishment of a grievance redressal mechanism and GST tribunal, for instance, is yet to materialise. Traders also assert that the confusion caused by frequent changes in tax rates remains unresolved.

Lingering VAT cases

Even after six years, unresolved cases from the previous VAT regime continue to pose challenges for taxpayers under the GST system. Advocate KS Hariharan, who handles such cases, confirmed the persistent tax issues faced by taxpayers. This included concerns related to the input tax credit and the inadequate protection of taxpayer rights.