Telangana Chief Minister K Chandrasekhar Rao plans to take up some of the GST related concerns with Prime Minister Narendra Modi to have them resolved.

The State is also mulling the prospect of taking up the State's concerns to the apex court with regard to GST provisions for some of the development and welfare projects such as Mission Bhagiratha, Mission Kakatiya, irrigation projects, two-bedroom housing project and other infrastructure projects under roads and buildings.

When the GST Council met on Saturday, KT Rama Rao, State IT and Industries Minister, was deployed to articulate the State's concerns and how they stand to lose if the GST slab of 18 per cent is levied on these projects.

However, with the GST Council reducing the slab from 18 to 12 per cent it is still higher than 5 per cent VAT which was levied earlier of these projects.

While the Government saves about Rs 13,800 crore, down from Rs 41,400 crore is 18 per cent were levied, it would still have to bear additional burden of Rs 27,600 crore. This has become a matter of concern for the Telangana Government.

All these projects are flagship initiatives of the KCR led Government and such tax slab is seen to be detrimental to the State's interests.

In the past too, the State Finance Minister Eatela Rajender, who had been representing the State had petitioned the GST Council and the Finance Minister Arun Jaitley about the State's concerns about fixing thee projects under the 18 per cent slab.

While the State had sought exemption of these projects from the higher slab on the ground that these are development cum welfare focussed, If the State's concerns are not addressed, the Government may consider also taking up the matter to the Supreme Court.

While bringing down of GST slab from 18 to 12 is seen as partial relief, the State sees such steep levy as a major blow for these projects.

(This article was published on August 6, 2017)
Post Comment

Get more of your favourite news delivered to your inbox

Please enter your email. Thank You.
Newsletter has been successfully subscribed.