State makes strong pitch for GST exemption

Finance Minister Eatala Rajender says the public should not panic over GST as the prices of most of the essential commodities would come down

Hyderabad: Finance Minister Eatala Rajender on Thursday reiterated that the Goods and Services Tax (GST) should not be levied on handloom industry, granite industry, beedi industry, and State-run schemes like irrigation and drinking water
projects.

Speaking to the media persons here at the Secretariat, the Finance Minister said that he will attend the launch of GST at the Parliament House in Delhi on Friday.The Chief Minister K Chandrashekar Rao may not attend the launch due to his health condition, he added.

He said the public should not panic over GST as the prices of most of the essential commodities would come down.
He opined that exemptingthe handloom, granite and beedi sectors will help them. He said since the poor people use beedis it is not justified,but GST can be levied on cigarettes instead. Mission Bhagiratha will distribute waters to rural farming andalso provide safe drinking water to the people, Eatala said.

In the wake of the GST regime being implemented from July 1, officialsare geared up to implement it and address the grievances that may crop initially despite many measures being taken for hassle-free mechanism. The Minister said that out of 2.25 lakh traders, 1.70 lakh traders have already enrolled for the GST and about 25000 will follow suit by July 5, the deadline. Rajender said that he will express his voice of concerns in the GST council meeting on June 30.

With its GSDP pegged at 17.9 per cent, surpassing that of national GDP, Telangana is not going to get compensation from the Centre which will give it to the States with 14 per cent growth rate. He felt that there will not be any adverse impact on the revenues and added that the State is likely to get more revenue from the Service sector which will cover the losses of manufacturing sector.

The key departments, stakeholders and agencies are being sensitised ahead of the GST launch and integration of the treasury network in the State with the Good and Service Tax network had been completed well in advance, he said. Reserve Bank of India, core bankers for the new tax system, had also been integrated with the Treasury, Eatala said.

The traders and the citizens can call the toll free number 18004253787 to clarify their doubts on GST The minister said that the State still has its worries that are yet to be addressed by the Centre over the prospect of the negative impact of certain key segments.

The Chief Minister K Chandrashekar Rao had already written to the Union Finance Minister Arun Jaitley on the status quo and requested the Union Minister to exempt GST on six key sectors such as the Irrigation projects, Beedi, Handloom textiles, granite and others which have high employment potential, he added.