The finance minister said that imposition of GST on PDS, which is meant to serve the poor, is only adding to the burden on the state government.
Telangana Finance Minister T Harish Rao on Saturday sought exemption from GST for works related to the maintenance and repair of about 46,000 water bodies under the minor irrigation department. These water bodies serve the irrigation needs of about 25 lakh acres.
The minister made the suggestion at the 45th GST council meeting called by Union Finance Minister Nirmala Sitaraman.
Harish Rao took part in the GST meeting through a video conference from BRK Bhavan in Hyderabad. Chief Secretary Somesh Kumar also took part in it.
Harish Rao sought exemption for milling and transport services related to the Public Distribution System (PDS) from GST. He said that imposition of GST on PDS, which is meant to serve the poor, is only adding to the burden on the state government.
The minister said the BRS government opposed the imposition of GST on beedi leaves. Beedi-rolling is an industry that is feeding a number of women in tribal areas as well as in plains. Already the Centre had imposed 28 percent GST on beedis.
The state government had opposed it in the past. The imposition of 18 percent GST on beedi leaves would only affect the livelihood of the tribals.
After the finance minister listed out the state government’s suggestions, the GST council referred those relating to minor irrigation, PDS, and beedi leaves to the fitment committee for review. The finance secretary, Union government, assured them that the Centre would consider the suggestions in regard to making amendments to GST invoice rules.