Telangana to lose ₹5,000 crore annually due to GST rate revision

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By HNH Web Desk
Telangana GST rate revision

Hyderabad: Telangana will incur an estimated annual revenue loss of ₹5,000 crore following revisions to Goods and Services Tax (GST) rates, Deputy Chief Minister Bhatti Vikramarka Mallu said on Monday. He described the move as a deliberate policy decision intended to benefit the people with low-income, middle class, and farmers.

Speaking at an interactive session organised by the Commercial Tax Department at the MCRHRD Institute, Bhatti said the revised GST structure has lowered the tax slab on several items, including agricultural equipment, food products, and cement—from 28% to 18%. He stated that these changes will ease costs for millions and accelerate growth in the construction sector amid rising urbanisation.

Telangana GST rate revision to ease prices on key goods

Bhatti urged traders to reflect the new reduced rates transparently and ensure that the intended relief reaches consumers. He also raised concerns over misuse of Input Tax Credit (ITC) and appealed to law-abiding traders to assist in preventing tax evasion.

“The government is open to resolving any issues raised by the trading community,” he said, calling for closer cooperation between the state and business sectors to drive inclusive economic development.

Referring to Hyderabad’s rapid expansion, Bhatti noted that the city is evolving into a “city state” and that urban growth across Telangana necessitates more organised infrastructure development.

Senior officials including Finance Principal Secretary Sandeep Kumar Sultania, Commercial Taxes Principal Secretary Rizvi, and Commissioner Haritha attended the event. Representatives from the insurance, dairy, and electronics sectors were also present.

 

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