Telangana government to go to SC if GST Council does not help

Hyderabad: The TS government will take a final decision on starting a legal fight seeking five per cent GST on work contracts taken by the government based on the the outcome of the September 9 GST Council meeting here.

The GST Council had initially imposed 18 per cent GST on government work contracts which affe-cted irrigation and power projects, Mission Bhagiratha, Mission Kakatiya and the 2BHK scheme. On the state’s representation, the GST Council brought down the rate to 12 per cent. 

A senior officer said the state government would demand for total removal of GST on works contracts. If the Council would reduce it to 5 per cent, that would also be acceptable, he said. Before GST, the state had imposed five per cent VAT on works contacts.