Jaitley’s last minute effort prevented TRS boycott of GST launch

Thanks to the last minute intervention by Finance Minister Arun Jaitley, the Telangana Rashtra Samithi, a key non-NDA friend of the BJP government at the Centre, reversed its decision to stay away from the grand launch of the GST on the intervening night of Friday 30 June and Saturday 1 July. Earlier, TRS president and Telangana Chief Minister K. Chandrasekhar Rao was unhappy with the possible loss to the state due to the introduction of the Goods and Services Tax.

KCR, who was in New Delhi and was to participate in the grand launch of the GST in the Central Hall of Parliament, cut short his trip and returned to Hyderabad on Thursday night. He was unhappy that the Centre did not concede to his demand to roll back the 28% tax slab on beedis and 18% tax on major infrastructure schemes of the government, which has posed an additional burden of around Rs 19,000 crore on the exchequer.

Telangana has also been seeking exemption from GST in clothes and apparels and granite industry that employ a large number of people after agriculture.

KCR wrote two letters to the FM in the last few days and sent a delegation of MPs to meet the minister in this regard. However, there was no response from Jaitley. Beedi and granite workers and handloom weavers are considered a support base for the TRS.

Miffed over the Centre’s refusal to concede his demands, KCR not only returned to Hyderabad but also asked his Finance Minister Etela Rajender not to go to New Delhi to attend the GST Council meeting hours before the midnight launch.

A delegation led by TRS MP B. Vinod called on Jaitley and informed him about the TRS’ decision to stay away from the GST meet on Friday. But Jaitley quickly called up Rajender and assured him that the demands of Telangana would be considered within a month after the GST launch. Sources close to Rajender confirmed the development.

Following Jaitley’s assurance, KCR relented and allowed Rajender to visit New Delhi on Friday morning. The TRS MPs too decided to turn up at the midnight launch of the tax reform.