Phase II reorganisation of Keralam’s State GST department under way

Representational image.

The Phase II reorganisation of Keralam’s State Goods and Services Tax (State GST) department, which is now under way, will incorporate process reforms recommended by the 57th GST Council, Chief Minister V.D. Satheesan said on Monday (October 26, 2026).

The 57th GST Council meeting held on October 8 had suggested changes in registration, filing of returns, refunds and enforcement. Phase II reorganisation will be implemented by incorporating changes necessitated in the department’s verticals and staff deployment once the Act and Rules are amended in line with the recommendations of the council, Mr. Satheesan said in a written reply to the State Assembly on Monday.

The United Democratic Front (UDF) government is moving ahead with a Phase II reorganisation of the department which focuses on “the redistribution of existing posts in order to enhance the functioning of the State GST department,” according to a September 29 order issued by the Taxes department.

The government has also constituted a high-level committee chaired by the Additional Chief Secretary (Taxes) for the purpose of examining the reorganisation proposal. The committee, which has been directed to submit its report “at the earliest,” had its first meeting on October 15. It has as its members Additional Chief Secretary (Finance), Principal Secretary (Personnel and Administrative Reforms), Secretary, Planning and Economic Affairs, and the Commissioner of State Tax.

The Chief Minister, who also handles the Finance portfolio, informed the State Assembly that the reorganisation is aimed at improving the department’s operations and the efficiency of tax collection. The department also envisions a new system to plug tax leakage, he said.

During the previous Left Democratic Front (LDF) government’s tenure, the State GST department was restructured into audit, intelligence and taxpayer services in January 2023. The department is now examining whether the consequent deployment of personnel has in any way affected the efficiency of tax collection.

The Revised Budget for 2026-27, presented by Mr. Satheesan in June, had stated that the department would be strengthened by leveraging technology and AI-based data analytics and a ‘Data-Driven Decision Support System.’ The Budget had earmarked ₹30 crore for the revamp.