TS for less GST on gold, bidis

The TS government is to lobby in the next GST Council meeting on June 3, for lower GST rates for the six crucial items for which the tax has not yet been fixed.

The government wants total tax exemption for agricultural implements used by farmers. And it wants the lowest tax slab of five per cent for the other five items, namely, gold, textiles, bidis, footwear and biodiesel.

The state has lined up several schemes to boost the agriculture and textile sectors and it is concerned that higher tax rates will hamper its plans. Finance minister Etela Rajender said it is not fair to burden farmers by imposing tax on agricultural implements. “We are encouraging mechanisation to help farmers to achieve good productivity with lower expenditure. If taxes are imposed in the GST, it will lead to increase in prices and discourage farmers from going in for farm mechanisation.”

The Telangana state government is to lobby in the next GST Council meeting on June 3, for lower GST rates for the six crucial items for which the tax has not yet been fixed.

With over five lakh people in the state, especially women, dependent on the rolling of bidis for a livelihood, the state government is concerned that higher tax rates will hit the bidi industry hard.

The government is concerned about the textile sector because it has planned a mega textile park in Warangal and mini textile parks in Karimangar and Nizamabad districts.

Enhanced tax rates will hit these projects as investors may not come forward to set up units.

The government is also encouraging handloom and powerloom weavers to migrate to textile jobs.

With over five lakh people in TS, especially women, dependent on the rolling of bidis for a livelihood, the state government is concerned that higher tax rates will hit the bidi industry hard.