The Telangana state government sought 34 changes, but only 2 were considered at The GST council meeting on Sunday. Minister for Finance Etela Rajender expressed anguish over the negative response.
The accepted recommendations include lenses and that of related to the regional cinema where ticket less than Rs 100 will be levied with 5percent tax while above the limit will gather 18percent tax.
The government requested the status quo for taxes related to flagship programmes like Mission Bhagiratha and other irrigation projects. However, the centre did not respond positively.
Lakhs of labourers in Telangana and Andhra Pradesh are dependent on Granite Industries where the taxes levied stand at 16.2 percent. However with new GST regime 28 percent tax is going to impact the sector drastically. TS government had been seeking reduction for Granite, since the last two council meetings.
Etela requested reduction of burden on small scale industries which also went unheard. Previously taxes were levied for industries with 1.5crore turnover and above, but with GST the limit is 75lakh turnover. The government which took up Make-in-India prestigiously should give subsidies and exemption on similar lines and act encouragingly on the recommendation.
The government requested exemptions for common man housing. The taxes levied on star and non-star hotels is same with GST, while Telangana proposed 5percent for non-star hotels.
Out of the 133 recommendations, only 66 were accepted in the meeting. Despite the Chief Minister K Chandrashekar Rao writing to the Centre seeking changes in GST, the centre did not respond receptively.
