Telangana successful in getting GST on contract works cut to 5%

TS will demand zero tax on irrigation projects in next meet, says Finance Minister Etela Rajender

By Author   |   Published: 8th Oct 2017   12:38 am Updated: 8th Oct 2017   12:42 am
GST
WELL DONE: Chief Minister K Chandrashekhar Rao congratulating Finance Minister Etela Rajender at Pragathi Bhavan on Saturday.

Hyderabad: Finally, Telangana government has succeeded in getting the Goods and Services Tax (GST) burden on labour component of the contract works reduced by shifting it from a higher slab of 12 per cent to 5 per cent.

The GST Council, headed by Union Finance Minister Arun Jaitley, approved the reduction of tax slab at its meeting in New Delhi on Friday.

Earlier, the slab was reduced from 18 per cent to 12 per cent following the Telangana government’s extreme pressure on the Central government. The State government has been carrying out massive developmental works such as Mission Bhagiratha, Mission Kakatiya and construction of 2BHK houses which raised its demand for reduction in GST rates.

Congratulating Telangana Finance Minister Etela Rajender’s efforts, Union Finance Minister Arun Jaitley announced reduction of slab from 12 per cent to 5 per cent on labour works.

It was learnt that during the Friday council meeting, the Union Minister recalled the Telangana government’s efforts to bring down the tax slab. Besides this, the council also gave approval for inter-State granite trade.

Telangana government feels that more crucial decisions will come during the next round of meeting on granite industry.

“We are constantly submitting memorandums and Chief Minister K Chandrashekhar Rao personally met Prime Minister Narendra Modi and Arun Jaitley for redemption of tax slabs. We succeeded o Saturday,” Etela told Telangana Today.

Rajender further said that the government was not so happy with the 5 per cent tax on the development programmes, “We are demanding zero tax on irrigation projects and it will be raised in next council of meeting,” Rajender said. adding a few more States were supporting TS demand which would help farmers and the poor.

CM congratulates

Chief Minister K Chandrashekhar Rao congratulated Etela Rajender at Pragthi Bhavan for strongly raising Telangana demands before GST Council meeting. “It’s victory for Telangana State. Rajender put forth demands in the right way,” the Chief Minister said while congratulating Rajender.

The Chief Minister asked Rajender to continue the spirit on other demands in the council meetings.