The Telangana government has been opposing the levying of 18 per cent GST on irrigation, drinking water and housing schemes, which are useful to the people. Photograph: (ANI)
Telangana Chief Minister K. Chandrashekhar Rao is all set to wage a legal battle against the Centre for taking unilateral decisions on the Goods and Service Tax (GST).
Rao registered a protest against the decisions taken by the GST Council in New Delhi yesterday and is also considering to write to Prime Minister Narendra Modi in this regard.
The Telangana chief minister believes that levying the GST on all ongoing projects across the nation is subjected to injustice.
Telangana Minister KT Rama Rao reiterating the same at the GST Council meeting demanded the GST should be lifted for drinking water schemes, laying of roads and irrigation.
The GST council has decided to reduce the tax from 18 per cent to 12 per cent for these schemes. But the Centre has decided to levy 12 per cent GST on the ongoing projects.
The Telangana government has been opposing the levying of 18 per cent GST on irrigation, drinking water and housing schemes, which are useful to the people, for which the chief minister has already written a letter to the prime minister and the Finance Minister Arun Jaitley.
"It is an injustice to levy the GST on the ongoing projects. By implementing the GST on the projects that started before July 1, the loss will be to the tune of Rs. 19,000 crore. Not only Telangana but also all other states will incur this loss and it will become a national issue," the chief minister said in the protest yesterday in the national capital.
Rao also said that it will be difficult to implement the decision taken after the Budget. The project details have to be included in the Budget and it is not possible after the Budget.
"By implementing the GST, the project estimates will increase and the same cannot be included in the Budget now. Hence, the Centre should change its decision. Or else a legal battle has to be fought in this regard," he added.