Hyderabad: Tourism, Culture, and Excise Minister Jupally Krishna Rao introduced the Telangana Goods and Services Tax (Amendment) Bill, 2026 in the Legislative Assembly on Monday. He tabled the Bill on behalf of Chief Minister A. Revanth Reddy.
The proposed amendments aim to align Telangana’s GST framework with decisions taken by the GST Council during its 51st to 55th meetings. Jupally stated that the Central government had already enacted these changes. Telangana, he added, must follow suit to maintain national uniformity in GST administration.
Key provisions: Fraud reclassification and alcohol exclusion
The Bill introduces Section 74A, which enables tax officials to reclassify assessment cases as fraud or non-fraud based on evidence. Jupally said this change will help distinguish genuine cases from deliberate evasion.
In line with a Supreme Court ruling, the Bill excludes Extra Neutral Alcohol used in liquor manufacturing from GST through an amendment to Section 9.
The Minister also highlighted a critical terminology change. The phrase “plant or machinery” has been replaced with “plant and machinery,” resolving issues flagged in the Safari Retreats case. Additionally, the Bill proposes special compliance rules for pan masala and tobacco manufacturers.
Updates on input credit, appeals, and e-commerce norms
The Bill revises the definition and role of Input Service Distributors. It also amends terms like “local fund” and “municipal fund” to remove ambiguities.
Jupally said new provisions will streamline appeals before both first appellate authorities and the GST Appellate Tribunal. He added that the Bill covers updated procedures for registration, return filing, voucher taxation, summons issuance, and e-commerce compliance.
The Bill replaces Ordinance No. 6 of 2025, which was published in the Gazette on November 11. The GST Council has directed all states to complete such amendments by September 30, 2025.
Concluding, Jupally asserted that the Bill would improve tax clarity, strengthen administration, and ensure consistency with national GST rules.
రాష్ట్రంలో వస్తు సేవల పన్ను నిబంధనలను మరింత సరళతరం చేస్తూ, కేంద్ర ప్రభుత్వ మార్గదర్శకాలకు అనుగుణంగా రూపొందించిన ‘తెలంగాణ వస్తు, సేవల పన్ను (సవరణ) బిల్లు-2026’ను సీఎం తరఫున అసెంబ్లీలో ప్రవేశపెట్టాను. గత ఏడాది నవంబరులో జారీ చేసిన ఆర్డినెన్స్ స్థానంలో ఈ నూతన బిల్లును తీసుకొచ్చాం.… pic.twitter.com/oCULU35QTX
— Jupally Krishna Rao (@jupallyk_rao) January 5, 2026