Telangana Chief Minister K. Chandrasekhar Rao toned down his attack on the Central government over 12% GST on public utility projects on Monday, and said that the success of the GST would depend on how well the concerns of the people were addressed by the Centre.
Addressing a meeting at Pragathi Bhavan on Monday, KCR also said that several countries had tried to implement the GST but had to retract it, due to issues.
The Telangana government has urged the Centre to reduce GST on its ongoing public projects to 5%.
The GST Council, which met in New Delhi on Saturday, decided to reduce the GST from 18 to 12% but Telangana was not satisfied with this decision.
At a review meeting with top officials on Sunday, he reiterated that the state government will go for a relentless fight over 12% GST levied on the construction schemes aimed at the people's welfare.
He asked how far it is justified to levy GST on the works started on June 30 whereas the GST came into existence from July 1? "Since the project estimates have been prepared keeping in view 5% of VAT it is not possible to change them," a statement from the Chief Minister's office quoted him as saying.
KCR also plans to hold a meeting with high-level ministers and officials on Tuesday, over the impact of GST, as he plans to write to the Prime Minister.
While KCR had earlier threatened to take the fight to the court, he did not make any such indications on Monday.
The Times of India reported that KCR took a step back after senior BJP leaders, including Union minister Bandaru Dattatreya, assured him that the NDA government would review the tax rate shortly.
â€œWe have asked all departments to figure out the actual burden on the government and the CM will send his letter to the PM on the matter on Tuesday. The CM will request the PM to not derail developmental activity in Telangana," a senior official told TOI.
Telangana argued that the high rate of GST will put huge burden on schemes like Mission Bhagiratha, aimed at providing safe drinking water to every household, Mission Kakatiya, taken up for revival of irrigation tanks, on various irrigation projects, double bed room housing scheme for poor and Roads & Buildings projects.