95% done: Karnataka ahead of all other states in GST registration
- The new taxation system, Goods and Services Tax (GST) will be launched on the midnight of July 1
- Karnataka is much ahead of other states in successfully implementing the policy, even before its launch
- So far, over 95 per cent of traders have registered themselves under the GST
FollowPrime Minister Narendra Modi may much to say politicially about the Congress-ruled, Siddaramaiah-led Karnataka government. But here's a reason for him to appreciate the state - Karnataka is inching towards to being the first state to have implemented Goods and Services Tax (GST) ahead of its launch on July 1. So far, over 95 per cent of traders in Karnataka have registered themselves for GST. The Central government has appreciated the state traders for their overwhelming response for the new revolution, reports Kannada Prabha.
In fact, the state is preparing for the GST implementation much ahead of other states. According to BV Muralikrishna, Joint Commissioner, Commercial Taxes the GST is a revolution as it ensures complete transparency for the traders. But the traders who are yet to register for the GST are going to suffer, for they may not be eligible for the input credit, Muralikrishna told Kannada Prabha.
What's input credit?
Inputs refer to materials or services that a manufacturer procures or avails in order to manufacture a product or services which is the output. The taxes paid by a manufacturer, while buying the raw material or services, are known as input tax and similarly the tax collected on the sale of the product or services is called the output tax, reports Live Mint. But unless the manufacturers or suppliers have registered themselves on GST, they may not get the benefit of input credit, K Raman, Joint Commissioner, Commercial Taxes told Kannada Prabha.
The GST would be charged on almost all the goods and services and it will be applied in different rates - 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent on various goods and services.
President Pranab Mukherjee is expected to launch the Goods and Services Tax (GST) policy at the Parliament at the July 1, 12 am. The GST is being hailed as the new tax regime that is expected to re-shape the country's economy.
