HYDERABAD: The State government expects that Service Tax collections will increase by 20 percent under GST in the State. Currently, the Service Tax collections annually amount to Rs 7,000 crores. Finance Minister E Rajender held a review meeting with officials at Secretariat on Thursday on GST implementation in TS. He asked the traders and people not to get agitated over GST.
“Closely follow the implementation of the GST. Any anomalies will be rectified in due course as GST Council is a permanent body,” he said. Rajender said they wanted the Centre to reduce higher tax slabs on 35 items.
“The Centre obliged to our demands with regard to seven items. Another six were under consideration,” he added. The state was collecting Rs 16,500 crores VAT and Rs 12,500 crore Central Excise every year. There would be a difference of Rs 4,000 crores.