Kerala Leads the Way in Businesses Migrating to GST

Kerala, known as the God's own country, is leading the way in businesses migrating to the Goods and Services Tax (GST) regime. With a high literacy rate and a thriving entrepreneurial culture, the state has been able to effectively adapt to the new tax system, which was implemented on July 1, 2017.

The GST regime was introduced to simplify and streamline the Indian tax system, which was previously fragmented and complex. Under the GST, all indirect taxes are subsumed into a single tax, making it easier for businesses to comply with tax laws and reducing their tax burden.

Kerala has been particularly proactive in the implementation of GST, with the state government taking several measures to educate and assist businesses in transitioning to the new system. The government has set up a dedicated GST cell to provide guidance and support to businesses, and has also organized training sessions and workshops to help businesses understand the new tax system.

In addition, the Kerala government has taken steps to ensure that businesses are not burdened by the transitional process. The state government has waived the late fee for filing GST returns for the first two months, and has also extended the deadline for filing returns for businesses with a turnover of less than Rs. 1.5 crores.

As a result, businesses in Kerala have been able to transition smoothly to the new tax system, with minimal disruptions or hiccups. The state has also seen a significant increase in GST registrations, with over 2.5 lakh businesses registering for GST as of August 2017.

One of the key reasons for Kerala's success in migrating to GST is the state's high literacy rate. With a literacy rate of over 96%, Kerala has a highly educated workforce that is able to understand and comply with the new tax system.

In addition, Kerala has a thriving entrepreneurial culture, with a large number of small and medium-sized businesses operating in the state. These businesses have been able to adapt quickly to the new tax system, and have also benefited from the reduced tax burden under the GST.

Overall, Kerala's success in migrating to GST is a testament to the state's entrepreneurial spirit and its commitment to fostering a business-friendly environment. With its proactive approach to GST implementation, Kerala has set an example for other states to follow, and has helped to streamline and simplify the Indian tax system.