Hyderabad: Telangana is expected to lose Rs 5,000 crore in revenue because of changes in GST rates, according to Deputy Chief Minister Bhatti Vikramarka Mallu. Despite this, the government decided to adjust GST rates to support poor, middle-class, and farming families.
On Tuesday, the Deputy CM met with business leaders at the Dr. Marri Channa Reddy Human Resource Development Institute. The event, organized by the Commercial Tax Department, focused on the recent GST rate changes.
The Deputy CM highlighted that even with a revenue loss of Rs 5,000 crore, the government prioritized policies that benefit common and middle-class people. As a member of the GST Council, he actively participated in making these decisions for the public’s benefit. The revised GST rates mean many goods will now cost less, and both the government and traders should ensure the public receives these benefits. Prolonged discussions in Delhi aimed to simplify GST procedures, and these uncompromised decisions will benefit the state’s people. Working together, the government and traders can drive progress.
He encouraged traders to clearly show the reduced prices to the public after the rate changes and to transparently convey the impact of GST updates. The Deputy CM requested that traders display price changes prominently in their shops so the public can easily understand the benefits of GST rationalization.
The Deputy CM stated that the new GST rates will notably lower the costs of agricultural tools and food items. He explained that the GST on cement has been cut from 28% to 18%, which will make cement cheaper and boost growth in the construction industry. As Hyderabad evolves into a “city state” and urbanization rises, the infrastructure sector can organize its operations more effectively.
He also urged traders to display the reduced cement prices at their shops. Regarding Input Tax Credit (ITC), he affirmed its advantages for honest businesses. However, dishonest practices are causing revenue losses for the state. He called on honest traders to report such misconduct to the government.
