KCR gears up for fight against GST
■ CM to meet state FMs next month
■ THE TS government is not satisfied with the 12% GST on work contracts.
■ THE GOVERNMENT wants it to be further reduced to 5 per cent.
Chief Minister K. Chandrasekhar Rao has stepped up efforts to garner the support of other states in his fight against imposition of GST on projects of public importance such as roads, flyovers, irrigation projects, drinking water projects etc.
The next round of the GST Council meeting will be held in Hyderabad on September 9 and the CM wants to use this opportunity to hold consultations with finance ministers of all states who are part of the GST Council.
To this end, he will be hosting a dinner for state finance ministers at Pragathi Bhavan, and seeking their support to bring pressure on the Centre to lower the GST to five per cent.
The CM had threatened to file a case in the Supreme Court against the Centre if the tax was not lowered.
The GST Council had originally fixed 18 per cent GST on work contracts, which was reduced to 12 per cent last month after TS and some other states raised a hue and cry. But the TS government was not satisfied with this cut and wants a further cut to five per cent.
The Chief Minister directed senior officials of commercial taxes, finance, irrigation, roads and buildings, municipal administration and urban development, housing, and panchayat raj departments to submit detailed departmentwise reports on the impact of GST on Mission Bhagiratha, Mission Kakatiya, irrigation projects, 2BHK housing scheme etc.
Chief Minister K. Chandrasekhar Rao has stepped up efforts to garner the support of other states in his fight against imposition of GST on projects of public importance such as roads, flyovers, irrigation projects. The reports revea-led that the additional burden of 12 per cent GST was estimated at nearly `12,000 crore.
The government had awarded contracts worth nearly `2 lakh crore and entered into agreements with contractors based on five per cent VAT two years ago. The contractors are demanding that the state bear the additonal burden and have threatened to stop work if it fails to do so. The CM has directed finance minister to ensure that GST reduction on government projects is the main item on the agenda of the GST Council meeting to be held at Hotel Novotel, HICC.