Exactly a month after the ruling National Democratic Alliance (NDA) launched the historic Goods and Service Tax (GST) in a midnight ceremony held in the Parliament, Telangana Chief Minister K Chandrashekhar Rao has decided to take on Centre in a legal battle alleging unilateral decision making to create the law.
The CM said that the GST Council formulated to discuss the new rates has overlooked important details and unilaterally decided to levy taxes, there by ignoring considering the financial implications.
Speaking to the media in New Delhi on Saturday, the CM said that he will be writing to Prime Minister Narendra Modi to register complaint and will urge him to look into the matter.
CM Rao has long maintained that levying of the GST on the ongoing projects across the nation will lead to heavy losses.
“It is an injustice to levy the GST on the ongoing projects. By implementing the GST on the projects that started before July 1, the loss will be to the tune of Rs. 19,000 crore.”
Launching a stern warning, Rao asked the Centre to review its decision on implementing GST stating that it would lead to a significant rise in the project estimates or be ready to face a court battle with the state.
“Implementing GST will increase project estimates and the same cannot be included in the Budget now. Hence, the Centre should change its decision. Or else a legal battle has to be fought in this regard,” he said.
The CM further said that the issue he was raising was not unique, as just not Telangana, but other states will also incur losess. “It will become a national issue,” he added.
Notably, Telangana government has been for long opposing 18 % GST on irrigation, drinking water and housing schemes.
Rao has already written a letter to PM Modi and Finance Minister Arun Jaitley in this regard.