HYDERABAD: Three items, including the Telangana government’s demand for a reducion in tax on work contracts from 12 per cent to 5 per cent, are included in the agenda for the 21st meeting of the Goods and Services Tax (GST) Council to be held at HICC here on Saturday. This is the first meeting being held in Telangana after the formation of the GST Council.The three items included in the agenda are: Online tax payment problems, reduction of GST on work contracts and delay in transfer of IGST and CGST amounts to states.
“We hope that the GST Council may take a decision on Saturday on reducing the GST on work contracts from 12 pc to 5 pc,” state Finance minister E Rajender said. “There are apprehensions in several states on the imposition of GST on ongoing works as the high rate of tax might affect development; works,” he added. However, sources said, TS may demand zero tax on all ongoing works and 5 pc tax on new works. “A government imposing tax on another government’s work is not proper. This has been our argument right from the beginning,” the finance minister explained.
The other item on the agenda is about problems relating to online payments. “The online system is not in place in several north-eastern states. There is a cable problem. The online system of paying taxes is causing problems due to the insufficient bandwidth. A decision to increase the bandwidth of the GSTN website may be taken at the meeting on Saturday,” sources said.
The third item to be discussed is the complaint that payments to states of their share from IGST and CGST are being delayed.
TAX DEVOLUTION: Rajender also raised delayed tax devolution from the central government. Normally, the Centre would give funds to the states as part of central tax devolution on the first day of every month. After the implementation of GST, the tax devolution is being delayed 15 days or 20 days every month, which is hampering developmental works in the state.On Friday, the officers committee of GST Council formally met here to know the progress of the implementation of the decisions taken at the earlier GST Council meeting. “The officers will meet one day before the GST Council meeting to know the problems of the implementation of decisions, if any. They will also discuss the action taken report (ATR),” Rajender said.
TS to host GST Council meeting
The GST Council meeting will start at 11 am at HICC and ends at 5 pm
Of the 29 finance ministers of states, 24 have confirmed their participation so far
As many as 25 GST Secretariat officials will also attend it
The total number of delegates will be around 160
Jaitley to meet TS trade reps
Union finance minister Arun Jaitley will meet Telangana trade representatives after the GST Council meeting. Hoteliers, builders, granite traders and others will meet him and submit representations to him. Two representatives each from five key organisations will be allowed to meet Jaitley.
Dinner to be hosted at Faklaknuma Palace
After the meeting, the TS government will be hosting a dinner for all the delegates coming from across the country at Taj Falaknuma Palace. It will present a booklet to each participant, highlighting the tourism spots in the state. Telangana delicacies such as Ariselu, Sakinalu, Garelu, Hyderabad Biryani and others will form part of the menu. Packets of biscuits from Karachi Bakery will also be given to the delegates. Mementos of Charminar will also be presented.