Shaik Khader Rahman, Chief Commissioner of Central Goods and Services Tax (CGST) and Customs, Kerala, has praised the state for its exceptional tax compliance, noting that corruption is “almost negligible” and that “the majority of taxpayers are honest.”
Speaking in an exclusive interaction, Rahman highlighted Kerala’s strong culture of accountability, which has translated into a surge in GST revenue collections. He revealed that Kerala has over 14 lakh GST-registered taxpayers and the figures are projected to rise by nearly 20% in the next quarter.
Kerala’s Growth in GST Revenue
Rahman explained that Kerala’s revenue growth rate under GST stands at 20%—well above the national average. He credited this to the sincerity of taxpayers, efficient administration, and an improved IT-driven compliance system.
“Kerala has one of the highest per capita consumer bases in India, which reflects directly in GST collections,” he noted.
Industries and Exports
When asked about industry challenges, Rahman admitted that Kerala’s industrial growth lags behind other states, but added that the state has a huge potential in sectors like food processing, cashew, fisheries, and tourism.
He also identified Vizhinjam Port as a future game changer for Kerala’s economy. Once fully operational, the port is expected to cut shipping costs, attract international trade, and reduce dependency on ports like Colombo and Dubai.
Curbing Smuggling and Gold Seizures
On enforcement, Rahman underlined that the department has been particularly strict on gold smuggling. “Smuggling of gold has been a challenge in Kerala, but strict surveillance and coordination with other agencies have reduced incidents significantly,” he said.
However, he acknowledged that smugglers continue to exploit vulnerabilities at airports. “Most seizures are linked to carriers who are often just pawns in a larger smuggling network,” he explained.
Litigation and Compliance Ease
Another major achievement has been the drastic reduction in tax litigation. Rahman emphasized that efforts are being made to resolve disputes at the earliest level instead of dragging taxpayers into prolonged legal battles.
“Kerala stands out because taxpayers here are generally law-abiding and prefer to remain compliant,” he added.
Looking Ahead
With Vizhinjam set to boost trade, a steady rise in GST registrations, and continuous crackdowns on illicit trade, Rahman is confident that Kerala will remain one of India’s top-performing states in terms of tax compliance.
“Kerala can truly be a model for other states—where honesty, transparency, and efficient governance work hand in hand,” he concluded.
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