Hyderabad: Telangana will lose Rs 5,000 crore revenues due to GST rate revision, warned Deputy Chief Minister Bhatti Vikramarka Mallu. However, the government has taken a policy decision to rationalise GST for the welfare of poor, middle class and farming families, he added.

On Tuesday, at the Dr. Marri Channa Reddy Human Resource Development Institute, the Deputy CM interacted with the business community in a programme organised by the Commercial Tax Department in the backdrop of GST rate revisions.

Speaking on the occasion, the Deputy CM said that despite the State losing Rs 5,000 crore in revenue, the government has played a key role in the policy decision on GST rate revision for the growth of common and middle-class people. As a member of the GST Council, he has played an active role in taking decisions on behalf of the people. He said the GST rate revision is a measure benefiting crores of people. With the revised rates, a large number of goods will now be available at lower prices, and it is the responsibility of both the government and traders to ensure these benefits reach the public, he said. Prolonged discussions were held in Delhi to simplify GST procedures, and the decisions taken without compromises would benefit the people of the State, he added. Only when the government and traders work together can progress be achieved, he said.

He urged traders to honestly display the reduced prices of goods to the public after the rate revisions and to communicate the real impact of GST changes without hesitation. The Deputy CM requested that traders display in front of their shops, in a way understandable to the public, the details of how prices of various goods have changed after GST rationalisation.

He stated that the revised GST rates will significantly reduce the prices of agricultural equipment and food products.

He explained that the cement GST slab has been reduced from 28 per cent to 18 per cent, resulting in lower cement prices, which in turn will create major opportunities for growth in the construction sector. Hyderabad is transforming into a “city state” and urbanisation is increasing across the state; thus, the infrastructure sector will be able to organise its business systematically, he said.

He urged traders to display details of the reduced cement prices in front of their shops as well. Speaking about Input Tax Credit (ITC), the Deputy CM said it is truly beneficial for those who conduct business honestly, but due to the actions of those taking unfair shortcuts, the State is incurring revenue losses. He urged honest traders to provide information about such malpractice to the State Government.