CHENNAI: Kerala would be the first state to be information technology prepared to implement the proposed Goods and Services Tax (GST), a survey conducted by KPMG said.
The Centre plans to introduce GST and DTC (Direct Taxes Code) from April 1, 2011. While DTC would replace the Income Tax Act, GST would replace most indirect taxes at the central and state levels like service tax, excise duty, VAT, cesses, surcharges and local levies.
"They have done their homework...(on GST) And moreover, Kerala does not have any industries. Therefore if GST is rolled out as planned by Apr 1, 2011, they will be the first in the country to be IT prepared," BSR and Company Partner and National Head of Litigation K R Girish said about the KPMG report here.
On the findings of the report, he said if the GST impact is taken into account, India would be well poised to attain the double digit GDP growth.
About 88 per cent of respondents preferred to have single GST Enactment both for Centre and States," he said. Eighty six per cent preferred cumulative standard rates for goods and services, he added.
Stating that 66 per cent of respondents believe that exempted services be notified in the proposed GST, he said, 55 per cent of the respondents have not accessed the impact after implementation of GST.
"In fact, quite of few people do not believe if it will come on April 1 (as announced)," he said.
With the impact of GST, 78 per cent of respondents felt they would be much impacted due to increase in tax on services.
He said about 70 per cent felt that they were not adequately prepared for the new tax regime.
The survey sample size was 200 respondents from various industries. Thirty four per cent of companies, which reported over Rs 1,000 crore turnover participated in it, he said.
The mode of conducting the study was 'online' he said, adding, about 80 per cent of companies who have presence in more than one state had responded.
TVS Motor Company Chairman and former CII National President Venu Srinivasan formally released the report at a seminar organised by CII.
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