Hyderabad, 22 September (IANS) Telangana will have a revenue loss of about Rs 7,000 crore due to revised goods and service tax (GST) rates, which came into force from Monday, Chief Minister A. Revanth Reddy said and demanded that the Center compensate the state for revenue loss.
The Chief Minister said that it was not appropriate for the Center to take unilateral decisions, putting a burden on the states.
He said that the Center should provide feasibility gap funding (VGF) for five years. “It is the responsibility of the Center to make up for states that are losing revenue due to change in GST slabs,” he said.
The Chief Minister was responding to a query at a press conference organized to announce the bonus for employees of the state -owned Singareni Colliers Company Limited.
Revantha Reddy said that the state government had prepared a plan on the basis of expected revenue, but due to changes in GST slab, the loss of revenue will be affected by that.
He along with the central government to raise the issue of revenue loss to Telangana. Urged the Union Minister for Kishan Reddy.
He said that Deputy Chief Minister Mallu Bhatti will write a letter to the Vikramark Center and requested Kishan Reddy to talk to Prime Minister Narendra Modi and request compensation from the state for loss of revenue.
He said that when GST was introduced, the Center had announced the VGF for 14 percent or more revenue lost states. “Now in the second phase of amendments in GST, the Center must apply VGF for another five years,” he said.
During the GST Council meeting, Deputy Chief Minister and Finance Minister Vikramarka presented a report highlighting the state’s concerns.
During the 56th meeting of the GST Council, Mallu Bhatti Vikramarka, headed by Union Finance Minister Nirmala Sitaraman in New Delhi on 3 September, said that due to the proposed GST rate rationalization, any reduction in the revenue of the states will have a direct impact on essential services like health and education and welfare skims.
He also said that it will have an impact on the common man and middle class. In addition, the availability of funds for infrastructure projects will have a huge impact on the development of the states.
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