KCR writes to PM, Jaitley seeking seeks GST exemptions

Chief Minister K. Chandrashekhar Rao has requested the Government of India to exempt the works that are covered under Beedi Industry, Granite Industry, Irrigation and drinking water works from GST. To this effect the CM has written letters to Prime Minister Narendra Modi and Union Finance Minister Arun Jaitley on Wednesday evening.

The Chief Minister expressed his concerns in the letter mentioning that in the state of Telangana several thousands of workers are living on Beedi Industry and as such imposing excess taxes on Beedi Industry will adversely effect the interest of Beedi workers.  He mentioned in the letter that there are about 2,000 Granite processing units and in these units about two lakh people are provided direct employment as well as about five lakh people get indirect employment.

KCR pointed out that GST Council has proposed 12 percent GST on Granite & Marble raw blocks and 28 percent GST on finished products.  Such high rates of GST will have a detrimental effect on demand and growth of Granite/Marble Industry, negative impact on trade and reduction in the employment potential leading to closing down of most of the units in the state.

The Chief Minister has requested the Prime Minister and Finance Minister to use their good offices for reduction of GST on Granite both raw and finished products to 12 percent.  The Chief Minister, referring to the Irrigation and drinking water works, mentioned in the letter that the Telangana Government has taken up a number of massive infrastructure programmes including the prestigious Mission Bhagiratha, Drinking water projects and Irrigation projects with huge investments. 

KCR said that the proposed rates of GST on these will increase the cost of the projects substantially.  Considering that the Irrigation and Drinking water projects are for larger public welfare, It would be appropriate to bring them under exempted category or at least put them in the lower GST slab of 5 percent.

The Chief Minister also congratulated government of India for steering the Goods & Services Tax from the conceptual stage to the implementation stage through consensus of all the states in the spirit of Cooperative federalism.