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The Goods and Services Tax Council is meeting here on Saturday to take stock of the roll-out of the nationwide uniform tax and the challenges it is facing. The Council will also consider requests from several States and trade associations, requesting it to review tax rates on various goods and services.
The Telangana Government will ask the council to consider further reducing the tax on work contracts as it would have a huge burden on the State-sponsored mega irrigation and drinking water projects.
Though the Council agreed to reduce it to 12 per cent from 18 per cent after receiving requests from several States, the State wants it to be reduced to the lowest slab to help avoid additional spending on some big projects.
It argues that while designing projects like Mission Bhagiradha, the State factored in the then prevailing VAT rate. It contends that a higher tax rate could adversely impact the project costs.
“We are also asking the Council to lessen the burden for beedi, granite and textile sectors,” a State government official told BusinessLine .
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