Exempt Beedi, granite firms and water projects: KCR to Centre


Exempt Beedi, granite firms and water projects: KCR to Centre(File Image) (File Image)

Hyderabad: The State government has urged the Government of India to exempt the works that are covered under Beedi Industry, Granite Industry, Irrigation and drinking water works from GST. 
In a letter to the Prime Minister  Narendra Modi and Union Finance Minister  Arun Jaitley, the Chief Minister K Chandrashekar Rao said  that several thousands of workers are living on Beedi Industry in Telangana and as such imposing excess taxes on Beedi Industry will adversely affect the interests of Beedi workers. 
The CM, in the letter, has stated that there are about 2,000 Granite Processing Units and in these units, about 2 lakh people are provided direct employment and about 5 lakh people get indirect employment. 
KCR pointed out that GST Council has proposed 12 percent GST on Granite & Marble raw blocks and 28 percent GST on finished products.  Such high rates of GST will have a detrimental effect on demand and growth of Granite/Marble Industry, negative impact 
on trade and employment potentiality leading to closing down of most of the units in the State. The Chief Minister urged the Prime Minister to consider the request for reduction of GST on Granite both raw and finished products to 12 percent.    

Referring to the Irrigation and drinking water works, he has stated that Telangana government has taken up a number of massive infrastructure programmes including the prestigious Mission Bhagiratha, drinking water projects and irrigation projects with huge investments.  The proposed rates of GST on these would increase the cost of the projects alarmingly. 
Considering that irrigation and drinking water projects are for larger public welfare, it would be appropriate to bring them under exempted category or at least put them in the lower GST slab of 5 percent, he added. 

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