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Telangana is ready to roll out the GST regime on July 1, Revenue Secretary Somesh Kumar has said.
“As far as technology and preparedness are concerned, even if you take migration ... we are okay, we are at 80 per cent migration to new system, remaining we will complete soon. No issue on that,” he told PTI.
Kumar said the State government had expressed concern over some anomalies in GST. “Earlier, small and medium enterprises were exempt from central excise. Now they have been added. That’s our main concern,” he said.
‘Practical approach’
In some areas, the tax rate is very high, he said, adding, the state government had been advocating for adoption of a “practical approach” — reduce the tax so that the compliance would be better.
Kumar said small and medium industries, particularly the granite sector, which had “no incidence of central excise” and attracted 2 per cent or 14.5 per cent tax, now come under the 28 per cent tax slab.
State revenues
Telangana is okay with the GST regime from the point of view revenues of the state, he said. “Because GST Compensation Act, whatever was our revenue in 2015-16, on year-on-year basis, they (Central government) are giving us 14 per cent increase. So, if we fall below that we will be given compensation, whatever is the gap. So, we are okay with it,” Kumar said.
The Telangana government is “very confident” that it would not need compensation as it is a growing economy, he added.
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