Telangana seeks roll back of GST over ongoing irrigation, drinking water, Housing and road projects in state

Telangana state government has sought roll back of GST (Goods and Services Tax) over the ongoing projects like irrigation, drinking water, Housing and roads in the state.

Chief Minister Chandrasekhar Rao in a high level review meeting in Hyderabad last evening said, the state government has decided to adopt a legal path against the central government alleging that it is taking unilateral decisions with respect to the GST.

An official release said, the state Government has conveyed this to the centre during yesterday’s GST Council meeting held in New Delhi through IT minister Taraka Rama Rao.

The release also said, the Centre’s decision to levy the GST of 12 percent over the irrigation, drinking water and housing projects will burden the state by an additional spending of about 19,000 crore rupees.

As per information received, Telangana is among a few states which supported the Goods and Services Tax at initial stage of its proposal and adopted it by passing a state legislation. But now opposing levying the GST on the on-going development projects like irrigation, housing, drinking water supply and roads which were taken up before the implementation of the GST as the state will have to bear the burden to a tune of about 19 thousand crore rupees.

With an expectation that the centre will wave the GST on these development projects keeping in view the public good the state has sought exemption of these projects from the GST.

The matter was also raised at the GST Council meeting held yesterday in Delhi. But, in the absence of a clear assurance from the Centre on exemption, Chief Minister Chandrasekhar Rao held a high level meeting late in the evening in Hyderabad and decided to take legal path against the Centre’s approach on GST. The Chief Minister also proposed to write to the Prime Minister and Finance Minister in seeking exemption.

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