Hyderabad: Telangana finance minister T Harish Rao on Saturday urged union finance minister Nirmala Sitharaman to exempt minor irrigation, Public Distribution Systems from Goods and Services Tax (GST).
Rao said that the Telangana government is providing irrigation to 25 lakh acres under 46,000 minor irrigation tanks.
Stating that maintenance of these tanks was attracting GST, the minister requested Nirmala to exempt these works from the purview of GST.
Participating in the 48th GST Council meeting from Hyderabad in a virtual mode in Hyderabad, he said imposing GST on these services was burdening the state government. The minister further pointed out that Telangana opposed the GST on beedi leaves.
“Tribals and poor women were depended on beedi-rolling. Imposing 18 per cent GST on beedi leaves would render them jobless”, Rao added.
Welcoming the proposal to amend tax invoice rules, the minister suggested considering the details of online customers like a pin number, address and others that would not be available with Paytm, Mobiquick, Bill desk and other online traders.
“If these details were not available, then states which have online customers would suffer tax losses, Rao added.
He said that the income would then go to the states, where the invoice was generated. The GST Council meeting decided to refer the suggestions made by the minister on GST exemptions to the fitment committee.
The Union finance minister assured the minister that they would resolve the invoice-related issues shortly. Telangana chief secretary Somesh Kumar too attended the meeting.
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