Mr Rao has decided to launch a legal attack against the central government for taking unilateral decisions on the GST. He said he will also write to PM Modi to draw his attention to the issue.
The levying of GST on all ongoing projects, not just in Telangana but other states too will be subjected to injustice, the Chief Minister stressed and demanded that the GST should be rolled back for drinking water, laying of roads and irrigation schemes.
The issue was raised in the GST council meeting yesterday in the national capital where IT Minister KT Rama Rao represented the Telangana state government.
The GST council has decided to reduce the tax from 18 per cent to 12 per cent for these schemes. But the Centre has decided to levy 12 percent GST on the ongoing projects. The Telangana state government has been opposing levy of 18 per cent GST on irrigation, drinking water and housing projects and in fact wants the GST to be completely lifted for people-centric schemes.
After the implementation of the GST, the project estimates will go up and the same cannot be included in the budget now, Mr Rao said.
“It is an injustice to levy GST on the ongoing projects. By implementing the GST on the projects started before July 1, the loss will be to the tune of Rs 19,000 crore. Not only Telangana state but other states will also incur huge losses and it will become a national issue,” he said.