'GST Council may reduce tax on labour component in government projects'

HYDERABAD: The GST Council, which is scheduled to meet in the national capital tomorrow, may positively consider lowering tax slab on the labour component in government project works, a senior Telangana government official said today.

According to the official, the Council may consider reducing the tax slab to 5 per cent from the existing 12 per cent.

"Some of the State Government projects such as Mission Bhagiratha, Mission Kakatiya and two-bedroom housing scheme which are labour intensive will get benefited if they reduce the tax component. We are hopeful that GST Council may positively consider the reduction. Our request is in tomorrow's agenda," the official told .

The Centre had reduced GST on government works to 12 per cent from the earlier 18 per cent. Telangana wanted it further to be reduced to 5 per cent.

The State Government had earlier given a list of 33 items such as beedi, granite and hand-looms among others , whose tax slabs are to be brought down.