Telangana Archives | XaTTaX GST Blog

‘GST Council may reduce tax on labour component in government projects’

October 4, 2017 admin Comments 0 Comment

GST Is A Game Changer

The GST Council, which is scheduled to meet in the national capital tomorrow, may positively consider lowering tax slab on the labour component in government project works, a senior Telangana government official said today.

According to the official, the Council may consider reducing the tax slab to 5 per cent from the existing 12 per cent.

“Some of the State Government projects such as Mission Bhagiratha, Mission Kakatiya and two-bedroom housing scheme which are labour intensive will get benefited if they reduce the tax component. We are hopeful that GST Council may positively consider the reduction. Our request is in tomorrow’s agenda,” the official told .

The Centre had reduced GST on government works to 12 per cent from the earlier 18 per cent. Telangana wanted it further to be reduced to 5 per cent.

The State Government had earlier given a list of 33 items such as beedi, granite and hand-looms among others, whose tax slabs are to be brought down.

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Source :  The Economic TImes

GST effect: Textile sector in Telangana losing competitive edge

August 31, 2017 admin Comments 0 Comment

Textile sector : GST Effect

To ease the pains caused by Goods and Service Tax (GST) on small scale textile manufacturers, the Telangana state government earlier this month had brought out a textiles and apparel policy. The policy speaks of incentives and land allocation for a mega-textile park, however, the sector has responded with mixed reactions. Textile sector exporters have had to keep their selling prices high mainly due to stiff competition from China and Bangladesh and a strong rupee.

Following which export orders that were mostly fulfilled by small scale textile manufacturers started drying up. “Now with GST, garments sector has lost the competitive edge. We used to have excise duty exemption but not anymore,” said Ramadevi Kannegati, president, Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP). “In garmenting, corporates used to give small textile traders bulk order mainly due to excise exemption but now that we are under GST that attractive factor is gone. Also, tax has to be passed on to consumer making product costlier, now we are not able to compete as small players and big players compete together.

There is a fear that we will lose orders,” she added. With regard to states new textile policy, Kannegati said, “The state will bear the cost of providing incentives but for how long? The state is then deprived of revenue. This is not an overall industrial policy, TS is at loss. The policy intervention should be to encourage handloom and it should be a central policy.

But we are grateful the state has come up with this.” “All states are giving incentives but further incentives with good infrastructure is needed. Land allotment for the mega textile park is just on paper,” said A Prakash, president, Telangana State Textile Association. “Instead of textile, the government should focus on the technical textile industry where there is a larger scope in India,” he added.

Most rural traders lack GST expertise

According to Prakash, most rural traders lack expertise in GST and are struggling to file returns. “The technical training provided by the state government was just theory based. Hands-on practical training on computers needs to be given to traders. Many were unprepared to shift to GST as the sector was included in GST much later,” Prakash added.

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Source:  The New Indian Express

Telangana registered good progress in GST implementation: CM KCR

July 19, 2017 admin Comments 0 Comment

GST: KCR

Chief Minister K. Chandrashekar Rao on Tuesday said that the Telangana State has registered a good progress in the implementation of the Goods and Service Tax from 1st of this month.

In the first 15 days itself, it could bring in 90 per cent VAT accounts under the new GST jurisdiction. Of the total 2.16 traders under VAT in the State, 1.92 were integrated under the GST by July 15 and got their numbers. Telangana thus became one of the few states in the country, which registered such a result within 15 days. The Central government officials have appreciated this development when in several states there is lot of confusion over the GST and there were some agitations against it.

The Chief Minister had held a high-level meeting on July 3 amidst the doubts that whether the GST is good for the State or not? Which items will come under the Goods and Service Tax? What percent of gain or loss? Etc., The CM has instructed the officials to organise statewide conferences to educate the people on the positive aspects of the GST. The CM has categorically asked the officials to create an awareness among the people that trades having their turn over less than Rs 20 lakh per annum need not pay any tax and for those having turnover upto Rs 75 Lakh per year will have to pay only one per cent as tax. It was decided at the review meeting that since the state will get 50 per cent of the GST, it would not be a loss to the state’s exchequer. The CM suggested fear and doubts on the GST in the minds of people should be cleared.

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Traders in 91 Circles of the Commercial taxes department were personally met by the officials. 51 awareness meeting were held on July 5 to 7. Chief Secretary Sri SP Singh has personally participated in the Circle meetings in Punjagutta and Abids. Principal Secretary (Finance) Sri Ramakrishna participated in Tandoor while Principal Secretary (Revenue) Sri BR Meena participated in Hyderabad and Karimnagar districts, and Commercial Taxes Commissioner Sri Anil Kumar in Warangal.The officials have created awareness on the GST to the traders who participated in the meetings. They have cleared their doubts and answered their questions.

The officials personally helped the trades to switch over from VAT to the GST. They have distributed pamphlets on the GST in Telugu and English to the people. They have told the people that traders having a turnover of Rs 20 Lakh per year need not pay any tax, those having the turnover of Rs 75 Lakh will only pay one percent tax and only 2 per cent tax for those making items. They have also informed the people on the items, including food items that are not covered under the GST.

A two day workshop was conducted on July 8 and 9th where Central Excise senior officials and state officials participated in which Union Minister B Dattatreya and Mukhtar Abbas Naqvi were present. Journalists were also given awareness at a meeting held here at the Press Club on July 11. A meeting was held for the Pharma sector on July 13, with contractors on July 14 and with consumers on July 15. Meetings are being organised for the IT sector, Real estate, Catering business, textile traders, Commission Agents, small traders, and a Toll Free No 1800 425 3787 was also formed to clear the doubts on the GST. This call Centre will work from 8 am to 10 PM and so far about 3000 callers have got their doubts cleared.

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The Chief Minister has congratulated the officials for creating awareness among the people, getting a record number of traders under the GST within a short time of 15 days. He congratulated Commercial taxes Principal Secretary Somesh Kumar and others for getting this success within a short span of time. He wanted 100 per cent registration by end of this month.

KCR said the state has asked the Centre to exempt/give concessions to Granite, textiles, Beedi industry, for the works taken for the public utility and hoped that the Centre would respond positively. He said this issue has been raised by the State in the GST Council and he also wrote a letter to Prime Minister Narendra Modi in this regard. He was upset that there are many people depending on these areas and they would have adverse affect due to the GST.