The Telangana Government’s demand of reduction of Goods and Services Tax (GST) on government works will be referred to the rate fitment committee of the GST Council, state finance minister E Rajender said here today. “We have been asking the GST Council to reduce tax for government projects. Earlier it was 18 per cent and it was reduced to 12 per cent in the previous meeting. We want it to be reduced to 5 per cent. The issue will be referred to the fitment committee which will take decision,” Rajender told reporters after the 21st GST Council Meeting held here today. The state government has already given a list of 33 items such as beedi and handloom cloth for which it wants lower tax rates under the GST regime, he said.
Union Finance Minister Arun Jaitley, in a press conference after the meeting, said as requested by Telangana Chief Minister K Chandrasekhar Rao, the GST Council has expanded the definition of `government works’.
The Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry submitted a six-point memorandum to Jaitley seeking exemption of certain items.