Telangana decides to move GST Council with 35 issues that need 'urgent' attention

HYDERABAD: The Goods and Services Tax regime set for nation-wide roll out on July 1, is expected to leave Telangana dissatisfied. The state has repeatedly taken to the notice of the GST Council in the run up to the GST roll out that it has a list of 35 items that need immediate attention and exemptions or changes in the GST rates.
"We will make a forceful argument again on June 30 at the final GST Council meeting before its roll out and make our case for 35 items we already represented to the Council about," Finance Minister Eatela Rajender told TOI on Wednesday.
The problem, however, according to Rajender is that each state, for instance Telangana, has problems and issues peculiar to it which do not find support from others at the Council. "Hence, the Centre is taking advantage," he said. "For instance, only Telangana and Chattisgarh have to deal with GST on beedis. Similarly, only Telangana raised the issue of granite industry while Rajasthan also raised its concerns about quarrying in that state. The other states that do not have these problems do not join in," he explained.
"The situation should not be such that states are reduced to begging and the Centre becomes the giver. The idea is that all revenues earned by the states and Centre go back to the people to meet their needs," he said.
The Telangana finance minister also said that the government expects some downturn in revenue initially after GST becomes a reality. The immediate impact on state might be to the tune of 3,000 crore to 4,000 crore, he said.
Rajender, however, made it clear that none of the welfare programmes of the state will suffer or be scaled down because of decreased revenue expected as a result of GST. The state's own tax returns is expected to be between 35,000 crore to 36,000 crore, he said.