The Kerala government today urged the GST Council to set up a mechanism to check profiteering by traders under the cover of new tax regime.
The state government also said the tax rate on some goods would cause hardship to the poor and adversely impact the economic growth.
The state cabinet opined that problems connected with tax remittance by traders existed even after three months of the implementation of GST and "this is causing hardship both to traders and consumers."
The state cabinet, chaired by Chief Minister Pinarayi Vijayan which met here today, decided to raise the issue of profiteering by traders and the need to rationalise the tax rate of goods that adversely affect poor and economic growth at the GST Council meeting.
Traders were charging exorbitant price for goods taking advantage of lack of effective software and clarity on the matter in the GST, a press release said.
The privat company Goods and Service Tax Network has been entrusted with the task of preparing software connected with remittance of tax by traders and so state government has limitations for intervening on the matter.
GSTN has to find solution to the problems, the release said.
It should appoint a technical officer to Kerala from Infosys in view of problems existing with regard to tax system.
The cabinet resolved to take various steps at the state level to redress the complaints of traders, the release said.
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