Telangana CM wants more GST relief

Telangana Chief Minister K Chandrasekhar Rao is not taking the GST issue lightly and wants it removed from ongoing schemes pertaining to drinking water, roads and irrigation. Rao is ready to take on the matter to the court if the Centre does not change its decision. The chief minister demanded that the GST be removed on drinking water schemes, laying of roads and irrigation.

“By implementing the GST, project estimates will increase and the same cannot be included in the budget now. Hence, the Centre should change its decision, or else a legal battle has to be fought in this regard,” a release from the Chief Minister's Office said quoting Rao.

The said issue was raised in the GST Council meetings earlier and once again reiterated by state IT Minister K.T. Rama Rao in the GST Council meeting held on Saturday. The GST Council has decided to reduce the tax from 18 per cent to 12 per cent for the said schemes. But the Centre has decided to levy 12 per cent GST on the ongoing projects.

Rao had written letters to Prime Minister Narendra Modi and Finance Minister Arun Jaitley on the matter and the state government has already registered its protest on the issue.

“It is an injustice to levy GST on the ongoing projects. By implementing GST on the projects started before July 1, the loss will be to the tune of Rs 19,000 crore. Not only Telangana, but all other states will incur this loss,” the chief minister explained.

Rao added that it will be difficult to implement a decision taken after the presentation of the budget as the project details have to be included in the budget. Rao termed the decision “unilateral” and decided to write a fresh letter to the prime minister on the matter.

Telengana CM K Chandrasekhar Rao is willing to drag the Centre to court if the GST demand is not met