Telangana Dream Fulfilled on GST Exemption

Hyderabad, October 07: As we knew that, The New Tax regime has been rolled out from July 1, from this many of the opposition has fought with the ruling Govt BJP.

Earlier, The Chief Minister KCR and Finance Minister Etala Rajender have argued with central govt to reduce the GST on Irrigation projects seriously, apart from this several states also asked the Union Finance Minister to reduce the rates. But the Telangana has strongly argued to reduce GST, at last, their dream was fulfilled.

The GST Council reduced the GST from 12 percent to 5 percent on Job contracts where material component was less and labor component is more than 25 percent. The reduction of tax on work contracts of high labor-intensive works would be a major relief to Mission Kakatiya, Mission Bhagiratha and canal works taken up under irrigation projects.



We will get a tax relief ranging from "1,000 crores to 2,000 crores", commercial taxes principal secretary Somesh Kukmar told to media.

From this aspect, Minister KTR also tweeted that, "Finally GST council heeds to Telangana’s advice and reduces the tax on Drinking water & Irrigation projects. Congrats to Finance Min Etela Garu"

This reduction in the GST will save Telangana nearly 8,500 crores in a single year.Responding to Telangana's demand, the Council also increased the slab for small traders from the existing 75 lakh to 1 crore. Those having a turnover of below 1 crore can now choose a composite tax structure of 1, 2 and 5% in place of GST. This will benefit more than 30,000 registered small traders in the state.