Centre obliges Telangana government, cuts GST on granite

Hyderabad: The state government’s long—pending demand on GST reduction on granite industry has been met in the GST Council meeting held at Guwahati on Friday.

The Council has decided to cut tax rate from 28 per cent to 18 per cent. The TS government has long been demanding GST reduction for granite and beedi industries.

Finance minister Etela Rajender had strongly demanded GST exemption or reduction for granite and beedi industries in the GST Council meeting held on Friday.

He also demanded reduction of GST rates on government projects and schemes irrespective of manpower or material component involved in the construction works.

The council responded favourably and cut GST on granite from 28 per cent to 18 per cent.

Mr Rajender brought to the notice of GST Council that lakhs of workers, especially women are dependent on beedi industry for their livelihood in Telangana and higher GST tax rate has been adversely affecting them.

He also pointed out that majority of the granite industries in Telangana are in small industries sector, who are providing employment to thousands of people and higher GST tax rate has made these units unvialble forcing closure.

Mr Rajender raised the issue of imposing GST on handicrafts, handlooms, agriculture equipment, drip irrigation etc.

“On one hand, governments are asking people to use handicrafts, handloom products, agriculture equipment, drip irrigation etc and on the other hand, we are imposing GST on them, which is contradictory. I have been demanding GST exemption for these sectors from the very first meeting of GST Council. We should consider this favourably at least in the next round of meeting,” he added.