Govt seeks GST exemption on irrigation projects, beedi

Hyderabad: The State government has sought exemptions from imposition of GST on several services such as maintenance and repairs of minor irrigation tanks, custom milling and transport pertaining to the public distribution system and on beedi leaf.

Finance Minister T Harish Rao who participated in the 48th GST Council meeting chaired by Union Finance Nirmala Sitharaman on Saturday. Harish Rao said that Telangana has 46,000 reservoirs under minor irrigation through which the government is providing irrigation to 25 lakh acres. He said that it is very important to maintain them every year and the same is being done by the Telangana government from time to time. The Centre should exempt these maintenance and repair works from GST.

The Minister further added that the Public Distribution System related services such as custom milling and transport services should also be exempted from GST. Imposing GST on these services provided to the poor is burdening the State government hence the Centre should exempt GST.

"We are against taxing beedi leaves. A large number of people from tribal, poor and remote areas, especially women, are employed in making beedis. Already 28 percent GST is levied on central deedis. We strongly opposed this in the past. The current imposition of 18 percent GST on leaves, which is the raw material of beedi, will harm the employment opportunities of the poor and tribals hence we request you to give an exception," said Harish Rao.

The Minister said that the State government welcomes the proposal to amend the tax invoice rules. However, the Minister expressed some doubts especially with regard to telecom services. Due to TRAI rules, online businesses such as customer address, pin number Paytm, Mobiquik, Bill Desk etc due to this, the revenue of the States where the consumers are located goes to other States. "We request that a change should be made keeping this in mind," said Rao.