Telangana's GST Rate Revision: A Double-Edged Sword

Telangana's government faces a potential annual revenue loss of Rs 5,000 crore due to revised GST rates. While supporting the change for the welfare of the public, Deputy Chief Minister Mallu Bhatti Vikramarka emphasizes honesty among traders to ensure benefits reach consumers and address revenue leakages caused by malpractices.

The Telangana government stands to lose Rs 5,000 crore annually following new GST rate revisions, Deputy Chief Minister Mallu Bhatti Vikramarka announced on Tuesday.

Despite the financial hit, Vikramarka, managing the finance portfolio, highlighted the Chief Minister A Revanth Reddy's support of GST rationalisation aimed at aiding the state's poor, middle-class, and farming sectors.

Engaging with the business community at a Commercial Tax Department event, he urged merchants to assure that benefits from reduced-priced goods reach the people and encouraged honest business practices to mitigate the state's revenue losses due to existing malpractices.

(With inputs from agencies.)