Hyderabad: Telangana Chief Minister K Chandrashekar Rao has decided to wage a legal battle against the central government for unilaterally pushing through the Goods and Services Tax (GST).
KCR on Saturday registered a protest against the decisions taken by the GST Council in New Delhi.
The CM will write a letter to Prime Minister Narendra Modi over the matter on Sunday.
Rao feels that by levying GST on all on-going projects, not only Telangana but other states as well will be subjected to injustice.
The issue has been raised in the GST council meetings earlier, and was raised again by state minister K T Rama Rao at the meeting in New Delhi on Saturday on behalf of the Telangana state government.
KCR has demanded the GST should be lifted for drinking water schemes, laying of roads and irrigation. While the GST council has decided to reduce the tax from 18 percent to 12 percent for these schemes, Centre will levy 12 percent GST on all ongoing projects.
The Telangana state government has been opposing GST on irrigation, drinking water and housing schemes. KCR has written letters to the PM, Finance Minister Arun Jaitley in this regard. The Telangana government has already registered protests on the matter.
KCR said that it is an injustice to levy GST on the ongoing projects. By implementing GST on the projects started before July 1st, the loss will be to the tune of Rs 19,000 crore for Telangana and other states, he said.
It will be difficult to implement GST after the budget as project details cannot be altered now, he said.
By implementing GST, project estimates will increase and it cannot be included in the budget now, KCR added.
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