HYDERABAD: Registration of commercial establishments under the Goods and Service Tax (GST) has touched the 2.30-lakh mark and is set to grow further as textile traders too join the ambit of GST, V Anil Kumar, commissioner of commercial taxes said at an orientation programme held on GST, detailing the technicalities involved in the new tax structure.
Explaining how GST will increase the tax base in the state in the years to come, Somesh Kumar, revenue principal secretary (commercial taxes and excise), said: “Earlier only 52 per cent of traders in the state paid taxes, 22 per cent of the total tax was paid by petroleum oil companies and 26 per cent by the liquor industry. This will increase in the years to come. If the state loses out on revenue, the Centre will compensate for it,”The departments have calculated a threshold revenue level of approximately Rs 14,000 crore. If it falls below that level, the Centre will step in to fill the revenue gap. Prior to GST, 34,000 people used to pay 99 per cent of the taxes in the state, Somesh Kumar added.
“The registration process for textile traders has started. We are in talks with them and will meet them again next week,” said Anil Kumar. Textile trade was added to the GST ambit only in June. The sector is therefore unprepared to switch to the new tax system.The orientation programme was conducted to allay fears and myths doing the rounds about GST in social media.