VAT exemption on petrol only after in-depth study

New Delhi: Stating that the Telangana Government has not yet taken a call on the Centre’s advice to reduce VAT on petroleum products, TS Finance Minister Eatala Rajender said that the government was studying the issue in depth.

“The decision would be taken only after studying all implications and discussion with the Chief Minister,” he said. Eatala Rajender, who was here to attend the 22nd GST Council meeting on Friday, said the council meeting finally got to discuss the issues being raised by the Telangana state government as all other states too began raising the issues.

Rajender said that the state government had been proposing exemption from GST for Mission Bhagiratha, Mission Kakatiya and housing project undertaken as a social welfare measure. He reiterated at the meeting that new projects being undertaken for the development of the state should be taxed only at 5 per cent and not at 12 per cent proposed.

The Centre's response was positive to these suggestions, he said. Eatala said that the meeting discussed lower slabs for about 60 items. The minister said he had explained the various programmes undertaken by the government and urged for withdrawal of tax on drinking waterpipes as these were meant to provide clean drinking water to the people in all towns and villages.

He said there was a general perception among people that GST, instead of bringing down prices of commodities, had only adversely affected them.

Later, the GST council conceded Telangana government's demand to reduce the GST slab from 12 per cent to 5 per cent for the ongoing works provided it is a labour-intensive work. The council went ahead and congratulated the state government for its persistence in this regard.