New Delhi: Telangana Chief Miniser K. Chandrashekar Rao has threatened to move the Supreme Court over the tax rate levied on public utility projects. However, he has indicated that he will wait for Prime Minister Narendra Modi’s response to his letter on the matter before taking legal action.
The Telangana CM wants public utility and infrastructure projects to be taxed at 5%. The GST council has approved that the rate be brought down from the current 18% to 12%. However, even this has not made the Chief Minister happy.
The Telangana Rashtra Samiti party is opposing the higher tax rate because it has committed to building a lot of public welfare projects, as promised in its manifesto in the 2014 elections and the Hyderabad corporator elections last year.
The party promised low cost housing for the people of Hyderabad and safe drinking water projects for the people of the state. In addition to this the Metro project in Hyderabad is also reaching its end stage.
At a review meeting with the GST council on Sunday KCR, as he is called, reiterated that the state government will wage a legal battle over the 12% rate levied on the construction schemes aimed at the people's welfare, Firstpost reported.
He asked how far it is justified to levy GST on the works started on 30 June when the GST came into existence from 1 July. "Since the project estimates have been prepared keeping in view 5 percent of Value Added Tax it is not possible to change them," a statement from the Chief Minister's office quoted him as saying, according to Firstpost.
The TRS has been broadly supportive of the NDA regime and in June the regional party supported the NDA’s pick for President. In extending support to Ram Nath Kovind. KCR has been hoping for Central government support in the form of funds for his pet projects in the state.
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