HYDERABAD: Stating that Telangana stands to lose around Rs 7,000 crore from the revision of GST slabs, Chief Minister A Revanth Reddy on Monday urged the Union government to compensate the state for the shortfall.
Addressing a gathering at the Secretariat while announcing bonus payments for Singareni employees, Revanth said the new GST structure would adversely affect state revenues. “The Centre should support states that are facing losses due to the revised GST rates. Telangana demands that these concerns be addressed,” he said.
The chief minister recalled that the Centre had provided compensation for GST shortfalls in the first five years of implementation.
He said Deputy Chief Minister Mallu Bhatti Vikramarka had already proposed in the GST Council that compensation continue for at least another five years.
“The Centre should cover the shortfall. We prepare our annual spending based on revenue estimates. The deputy CM will write to Union Minister G Kishan Reddy regarding this issue. He must take it up with Prime Minister Narendra Modi to ensure Telangana receives the compensation,” Revanth said.
Accompanied by Deputy Chief Minister Mallu Bhatti Vikramarka, the chief minister announced that 34% of the profits made by the SCCL will be paid to the employees and workers as bonus, including those who are working on contract basis.