Will gain from GST, says KCR

Anticipates 3000 cr more revenue annually

​Hyderabad: Contrary to the recent statements made by Finance Minister Eatala Rajendar that Telangana would incur a revenue loss of Rs 3,000 crore under the GST, Chief Minister K Chandrasekhar Rao said the government is expecting Rs 2,000 crore to Rs 3,000 crore more income under the new tax regime, which came into effect from July 1.

The Chief Minister held a review meeting on the effect of the GST on state revenues with top officials of the government at Pragathi Bhavan on Monday.

The officials told the CM that since petrol, diesel and excise were exempted from the GST, the new tax system will have no adverse effect on 50 per cent of the state revenue.

With regard to the remaining 50 per cent, the state would be getting its share from the increased revenues of the Centre.

The Chief Minister was informed that, on an average, the state would get about Rs 2,000 to 3,000 crore more income per year.

However, officials explained to KCR that the state would have to wait for the third quarter in December to understand the exact impact of the GST on the state economy.

In the wake of the objections raised by some sections of trading community who fear that the GST would affect their livelihoods, the Chief Minister instructed the officials concerned to organise awareness programmes among the people and businessmen on the GST.

Tentatively, the meetings would be held on July 5, 6 and 7 in 91 circles under the state Commercial Taxes department. The officials would clarify doubts among the traders, businessmen and general people on the new tax system.

Businessmen whose annual turnover is below Rs 20 lakh need not pay any tax. For those having turnover between Rs 20 and Rs 75 lakh, the tax is only 1 per cent.

This is a positive aspect. All small business and trades will have turn over below Rs 20 lakh and moderate businessmen will pay only 1 per cent tax.

Chief Secretary SP Singh and other senior officials were present in the meeting.