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Proposed GST tweaks set to take toll on Telangana annual revenue
In Short
Rs 800 cr annual revenue impact feared
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Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka speaking at the 57th GST Council meeting in Delhi on Thursday
Hyderabad / New Delhi: Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka stated that Telangana could face an annual revenue impact of around Rs 800 crore if the Centre implements changes relating to refunds on motor vehicles, capital goods, and input services.
Speaking at the 57th GST Council meeting in Delhi on Thursday, the minister highlighted that GST accounts for roughly 35 per cent of Telangana's own tax revenue, directly funding schools, hospitals, welfare schemes, and infrastructure development across the state.
Emphasising that any decline in GST revenue extends beyond a mere accounting issue to affect public service delivery, Bhatti urged the Centre to share full financial impact assessments with states prior to introducing reform measures. The state's internal evaluation suggests that the actual cumulative loss could potentially exceed double the initial Rs 800 crore estimate.
Bhatti advocated for stringent action against GST fraud, fake registrations, and identity detail misuse, alongside taxpayer-friendly administrative measures. He drew attention to instances where Aadhaar and PAN details of elderly individuals, homemakers, daily-wage workers, and other vulnerable persons were being exploited to establish fraudulent GST registrations.
The minister called for firm legal action against organized syndicates generating fake invoices to fraudulently claim or transfer input tax credit. Highlighting widespread tax evasion within the scrap sector, Bhatti noted that its unorganised, cash-heavy structure facilitates fake invoicing and illegal tax credit transfers.
To address these systemic vulnerabilities, Telangana formally proposed setting up a Group of Ministers under the GST Council to examine the scrap sector and identity theft comprehensively, while formulating an action plan to safeguard innocent citizens. Additionally, Bhatti recommended establishing regional offices of the GSTN and GST Council in Hyderabad to streamline regional tax administration and improve operational oversight.
