New GST rates: TG forced to bear revenue loss, says Cong leader

Hyderabad: Congress alleged that Telangana was forced to bear a huge revenue loss due to the rationalisation of GST rates in 2025.

In a media statement, PCC vice president S Jagadishwar Rao said Telangana is facing a huge revenue loss due to the rationalisation of GST rates in 2025. The central government has reduced the 5%, 12%, 18%, 28% slabs to only 5%, 18% and given tax cuts on items like essential commodities, medicines, automobiles, cement, etc., which will lead to a 15% fall in the state’s GST collections. “This is hurting the state’s finances and is having a severe impact on key sectors like welfare schemes, health, education and development. Deputy Chief Minister Mallu Bhatti Vikramarka strongly raised this issue in the GST Council meeting,” pointed out Rao.

He said that total loss in 2024-25 was up to Rs 7,000 crore, which is equivalent to 15% of the state’s GST revenue. The average tax rate fell from 14.4% to 9.5% and this is estimated to cost the state exchequer Rs 6,000-10,000 crore annually. “This is part of a conspiracy by the central government to prevent people from accessing the welfare schemes being provided by the Narendra Modi government in opposition states, especially the Telangana government,” he alleged.

Rao said Telangana’s welfare schemes fell victim to Centre’s irrational policies. By introducing GST, the Modi government has also damaged the federal system in the country. “It is strange that Prime Minister Narendra Modi is boasting that he has done something great to the country and did justice to the poor people by imposing GST. In 2017, he came with the slogan of One Nation One Tax and broke the hearts of the people by imposing tax on salt through five slabs. Similarly, Modi has also imposed GST on the essential goods used by the poor people, even on salt, and cheated the poor people in the same way as the British. If today he is taking credit for the reduction of tax on goods from seven to 16%, then I question who is responsible for the exploitation of the people for 8 years from 2017 to 2025 ?,” Rao asked.