Thrivananthapuram: Governor P. Sathasivam signed the State GST ordinance on Friday. The finance minister said GST rules would be ready in a few days. Kerala is first state to usher in GST through an ordinance as it was not able to pass the GST Bill during the Budget session in May. State-specific laws are required to empower the state tax administration to collect the new tax. Under VAT, the fiscal powers between the Centre and the states are clearly demarcated in the Constitution with almost no overlap between the respective domains.
Under GST, the Centre and States will simultaneously levy the tax. As per a consensus formula thrashed out between the Centre and the states, 90 per cent of all assessees with a turnover of Rs 1.5 crore or less will be assessed for scrutiny and audit by state authorities. The Centre will have only the remaining 10 per cent. Above the Rs 1.5-crore limit, the Centre and states will assess in a 50:50 ratio.
