Telangana CM meets Arun Jaitley, discusses issue of defense lands, reduction of GST

Telangana Chief Minister K Chandrashekhar Rao met Union Finance and Defence Minister Arun Jaitley in New Delhi on Saturday as they discussed issues of defense lands and reduction of Goods and Services Tax (GST) on Public Utility projects.

Arun Jaitley told Chandrashekhar that the Centre will consider the two requests made by the state government.

The Center further stated that it would consider the request of the Telangana state government for reduction of GST on the Public Utility projects and will take appropriate decision.

Jaitley also informed Chandrashekhar that Centre is ready to handover the Bison Polo Grounds land for the construction of a new State secretariat as well as lands required for the expansion of Medchal and Rajiv Rahadari. He said that the Centre has examined the request from the state on the matter from all angles and decided to hand over the required land.

Jaitley said the decision on the request for the reduction of GST on Public Utility projects like Mission Bhagiratha, Irrigation projects, road works will be taken after discussing the matter in the GST Council meeting to be held in Hyderabad on September 9.

Jaitley said the GST on the construction works is reduced from 18 per cent to 12 per cent in response to the request made by the Telangana State Government. He said a decision would also be taken to further reduce it from 12 per cent to 5 per cent.

Later, the Chief Minister thanked the Union Minister for agreeing to handover defense lands to the state government and his assurance to consider positively on the GST reduction.

The CM said the Centre has recognised the importance of having a new secretariat and expansion of Rajiv Rahadari, Medchel highways. He hoped that the GST council will also take a favorable decision on the GST reduction to Public Utility projects in its meeting to be held in Hyderabad and said the state would raise the issue at the meet.

Chief Advisor to the state government Rajiv Sharma and Chief Minister's Principal Secretary S Narsing Rao accompanied Rao.