Telangana Finance Minister E Rajender today said the state was ready to migrate to Goods and Services Tax from Saturday, though it is looking to the Centre for some solace with regard to revision of tax rates on about 35 items. “So far, about 82 per cent or 1.7 lakh traders have registered under the new single taxation regime. Necessary training has been imparted to officials. We have given a representation to the GST Council on about 35 items with higher tax slabs, of which seven or eight are being addressed now,” Rajender told PTI here. As many as 2.25 lakh traders or service providers are expected to come under GST’s fold in Telangana, he said.
As to the impact on the state’s revenue, the minister said it would be known only after GST’s roll-out, but indicated that the state may lose Rs 2,000 to 4,000 crore annually. “Our revenue growth is 17.9 per cent. GST Council took the average base rate of growth for all states at 14 per cent. So we may lose some revenue to that extent,” he said. A senior official said the state exchequer may lose about Rs 600 crore in the revenue sharing between it and the Centre. Rajender said the state has requested the GST Council to take a lenient view on some of the state government projects such as the Mission Bhagiratha, Mission Kakatiya and the double-bedroom housing scheme.
In view of a large number of people dependent on beedi making, Telangana has sought softer view on that industry too. According to the minister, the state collected VAT of about Rs 16,500 crore excluding liquor and petroleum products last fiscal. He said he was hopeful that wrinkles in the roll-out of the new regime, if any, will be sorted out within six months.