Telangana GST Compliance Soars to 82%: Commercial Taxes Officer Reveals
By: Admin July 20, 2024 Categories: GST Recent News
Enhancing GST Compliance: Telangana Aims for 90% by Month End
In a significant stride towards bolstering Goods and Services Tax (GST) compliance, the state of Telangana has witnessed a commendable rise from 68% to 82% in compliance rates over the past six months. This achievement was highlighted by a senior officer from the Commercial Taxes Department during a recent interaction with members of a prominent trade and industry body in Hyderabad.
Monitoring Leads the Way
Senior officials emphasized that stringent monitoring mechanisms played a pivotal role in this remarkable improvement. They attributed the increase to enhanced surveillance and enforcement strategies implemented by the department.
Ambitious Goals Ahead
Looking ahead, Commissioner of Commercial Taxes, T.K. Sreedevi, articulated the department’s ambitious target of achieving 90% tax compliance by the end of this month. Sreedevi underscored the vital role of collaboration between trade and industry sectors and the government in achieving this goal. The voluntary remittance of taxes was highlighted as a crucial aspect of this partnership.
Awareness and Education Initiatives
Addressing an awareness program organized by the Federation of Telangana Chambers of Commerce and Industry (FTCCI), officials reiterated the importance of GST registration and its benefits, particularly for small traders and manufacturers. Joint Commissioner of Commercial Taxes, Samyuktha Rani, informed attendees about an ongoing 10-day GST registration drive. She emphasized that businesses with a turnover exceeding ₹20 lakh or engaged in inter-state supplies are mandated to register under GST regulations.
Compliance Challenges Unveiled
Ms. Rani also shared some key insights gleaned from departmental audits. Notably, a significant number of taxpayers (23,374) have remained under the composition scheme for more than three years. Additionally, 19,277 taxpayers have neglected to file returns since their registration dates. The issue of businesses continuing operations despite cancelled registrations under previous tax regimes was also highlighted.
Sector-Specific Compliance Issues
The department identified sectors such as accommodation services and lease rentals as exhibiting notably high non-compliance rates. Efforts are underway to address these specific challenges through targeted interventions and stricter enforcement measures.
Industry Recommendations and Advocacy
In a proactive move, FTCCI announced its intention to submit a comprehensive set of recommendations concerning GST and direct tax policies to the government. The federation’s president stressed the need for policy adjustments that would better accommodate the realities faced by businesses in Telangana.
Calls for Regulatory Adjustment
Chairman of the GST and Customs Committee at FTCCI appealed for an increase in the turnover threshold for GST registration in Telangana, aligning it with many other states at ₹40 lakh. This adjustment, he argued, would alleviate compliance burdens on smaller businesses and facilitate smoother regulatory adherence.
Conclusion
The strides made in GST compliance in Telangana underscore the proactive measures taken by authorities to streamline tax administration and boost revenue collection. As the state edges closer to achieving its ambitious compliance targets, collaboration between government agencies and industry stakeholders remains crucial. Through ongoing awareness initiatives and targeted policy advocacy, Telangana aims to create a conducive environment for businesses to thrive while ensuring robust tax compliance standards.
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