Hyderabad: TRS Lok Sabha member A.P. Jitender Reddy requested the Centre to immediately take steps to reduce the GST rate from 12 to 5 per cent on ongoing projects. Making a submission during Zero Hour in the Lok Sabha on Tuesday, Mr Jitender Reddy said the state government was working on projects worth '2.3 lakh crores, including Mission Bhagiratha, irrigation projects and double bed room housing.
All these had been taken up before the introduction of GST, he said. After enhancement of the tax rate under the GST rate on construction material, the cost escalation would be between '20,000 crore and '30,000 crore, and the state government would not be able to bear this enhanced burden, Mr Jithender Reddy said. He demanded that the Centre come to the rescue of the state government which was seeking reduction in GST primarily for the reason that all the projects were taken up for public purposes.
“The Centre needs to protect the Telangana state government from this burden,” he said. Chief Minister K. Chandrasekhar Rao has said that he would write to Prime Minister Narendra Modi on the matter, and consider moving the apex court on the matter.
