CM KCR concerned against GST on Govt Projects

Hyderabad, Aug 06: The Telangana Chief Minister KCR has strongly concerned against the decision of the GST to impose 12 per cent of government projects under construction.

CM KCR decided to move the Supreme Court against the Centre for imposing GST on work contracts.

On Saturday, the GST Council which met in New Delhi decided to reduce GST from 18 per cent to 12 per cent on ongoing projects such as Mission Bhagiratha, Mission Kakatiya, irrigation projects, roads, and buildings.

The state government says these are welfare oriented, and should not be taxed. In the previous VAT regime, work contracts were taxed at 5 per cent.

The Chief Minister had deployed his son and minister KT. Rama Rao to Saturday's GST Council in place of finance minister Etela Rajender, who is a member. Mr. Rama Rao made a last bid effort to persuade the Centre to give GST exemption.



They strongly condemned the implementation of GST for projects under construction, saying that it is unfair to all states except Telangana.

In the previous GST Council meetings, the Chief Minister raised the matter and wrote letters to Prime Minister and Finance Minister Jaitley.

Though the GST reduction announced will save the government Rs 13,800 crore, Mr. Chandrasekhar Rao condemned the Council's decision and decided to write to Prime Minister Narendra Modi expressing his objection on the issue.

The tax burden on the TS government comes down to Rs 27,600 crore from Rs 41,400 crore. Mr. Chandrasekhar Rao had written to Mr. Modi and Union finance minister Arun Jaitley in June, seeking GST exemption for projects which were taken up in the larger interest of the people.