Telangana wants drinking water, other schemes out of GST ambit

GST should not be levied on ongoing schemes pertaining to drinking water, roads and irrigation, Telangana Chief Minister K Chandrasekhar Rao said, adding that a "legal battle has to be fought" if the Centre does not change its decision.
"By implementing the GST, the project estimates will increase and the same cannot be included in the budget now. Hence, the Centre should change its decision, or else a legal battle has to be fought in this regard," a release from the Chief Minister's Office said quoting Rao.
The issue was raised in the GST Council meetings earlier. The same was reiterated by state IT Minister K T Rama Rao in the GST Council meeting held yesterday, said the release issued late last night.

The chief minister demanded that the GST be removed on drinking water schemes, laying of roads and irrigation.
The GST Council has decided to reduce the tax from 18 per cent to 12 per cent for the said schemes, the release said.
"But the Centre has decided to levy 12 per cent GST on the ongoing projects," it added.

Rao had written letters to Prime Minister Narendra Modi and Finance Minister Arun Jaitley on the matter and the state government has already registered its protest on the issue, it said.
"It is an injustice to levy GST on the ongoing projects. By implementing GST on the projects started before July 1, the loss will be to the tune of Rs 19,000 crore. Not only Telangana, but all other states will incur this loss," the chief minister said.

It will be difficult to implement a decision taken after the presentation of the budget as the project details have to be included in the budget, the release quoted Rao as saying.
Rao termed the decision "unilateral" and decided to write a fresh letter to the prime minister on the matter today, according to the release.