HYDERABAD: Deputy Chief Minister and finance minister Mallu Bhatti Vikramarka demanded exemption from GST on the construction of government schools, arguing that such waivers would enable states to allocate more resources towards building additional schools and reinforce the fundamental right to education.
Bhatti voiced his concerns during the 53rd GST Council meeting, which was convened by Union finance minister Nirmala Sitharaman and included finance ministers from all states.
Additionally, Bhatti pointed to the need to exempt Extra Neutral Alcohol (ENA) from GST. He argued that including ENA under GST would reduce states' financial flexibility and increase the tax burden on goods managed by state governments. He supported the proposed amendment to the law concerning ENA.
The meeting also discussed a proposal to waive tax, penalty, and interest levied on taxpayers for willful non-compliance, subject to certain conditions. This measure aims to provide relief to taxpayers penalised due to a lack of awareness.
Bhatti supported the request for the early submission of the Rate Rationalisation Committee's report, which is expected to simplify the GST rate structure and make compliance easier for businesses and taxpayers.
He called for greater flexibility for states to use funds according to their specific needs and sought budget allocations for setting up skill development centres. He proposed that cess and surcharge taxes should not exceed 10 per cent.
Further, Bhatti requested that the net debt limit ceiling of states be communicated in advance to facilitate better budget planning.
Bhatti highlighted that Telangana received only 1.4 per cent of funds under Centrally sponsored schemes last year and requested budget allocations based on states' populations.
He suggested that MNREGA funds be allowed for asset creation activities and sought funds to support the development of Hyderabad as a global city.
