Two days for GST Council will meet in Hyderabad on Sept. 9

TS Govt. gearing up to present strong case before council

The State Government is gearing up to present a strong case before the Goods and Services Tax Council in support of its demand to reduce tax on public works to 5%.

The Government has asked the departments concerned to prepare elaborate reports on the impact of the GST in their jurisdiction as also the steps required for offsetting the likely losses they would incur.

Industries and IT Minister K.T. Rama Rao said that the Government would make a strong pitch for reduction of the GST on irrigation projects, Kakatiya and Bhagiratha Missions, housing and other projects during the next meeting of the GST Council slated to be held in Hyderabad on September 9.

Mr. Rama Rao, who attended the recent meeting of the GST Council in New Delhi, said that the State had represented its concerns on the huge burden that would be imposed on the State exchequer if the tax slab of 18% continued. The State had initiated project work valued at over ₹2 lakh crore including ₹ 1 lakh crore on irrigation projects, ₹ 43,000 crore on Mission Bhagiratha and ₹18,000 crore on two bedroom housing programme.

He said that the Government had told the GST Council about its resolve to take legal recourse if need be and it would explore other options if it felt that doors were closed over the State’s request. “But the door is not yet closed. Chief Minister K. Chandrasekhar Rao sought justice for the State and it is for the Centre to come to its rescue,” he said.

In addition to public projects, the State also sought reduction of tax slabs relating to granite and beedi industries which employed huge number of people. Telangana was not alone in seeking the exemptions as other States like Rajasthan, Bihar, Chhattisgarh and Jharkhand too sought exemptions based on their local needs.

The Government had initiated steps to make detailed presentation to Prime Minister Narendra Modi and Finance Minister Arun Jaitley ahead of the September 9 meeting in the issues relating to the impact of the GST regime on the State finances.

Source: The Hindu

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