Telangana Deputy CM wants GST exemption for school buildings

Telangana Deputy CM urges GST exemptions for schools, ENA, and MNREGA funds, seeks greater financial flexibility for States.

Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka urged the Central government to exempt the construction of government schools from the Goods and Services Tax (GST) which would enable the State governments to pump in more money for the construction of more school buildings.

Such exemptions would reinforce the fundamental right to education, he said while participating in the 53rd GST Council meeting attended by Union Finance Minister Nirmala Sitharaman and Finance Ministers from other States.

Mr. Vikramarka also argued for the exemption of Extra Neutral Alcohol (ENA) from the GST as the inclusion of ENA under GST would reduce the State’s financial flexibility while increasing the tax burden on goods managed by State governments.

He wanted the Centre to make changes in the usage of MNREGA funds so that asset-creation activities could be taken up under the scheme. He also urged the Centre to extend additional funds for the development of Hyderabad as a global city.

Mr. Vikramarka wanted greater flexibility for States for the usage of funds according to their specific needs. He said that cess and surcharge taxes should not exceed 10%. He also sought Budget allocations for setting up skill development centres.

Demanding that allocations under the Centrally sponsored schemes be made based on the State’s population, Mr. Vikramarka reminded that Telangana received only 1.4% of funds under Centrally sponsored schemes last year. He also wanted the early submission of the Rate Rationalisation Committee’s report, which is likely to simplify the GST rate structure for the benefit of businesses and taxpayers.

Mr. Vikramarka, who spoke to the media later, termed the BRS party’s concern over mines allocation as crocodile shedding tears. He said the BRS was responsible for accepting mine allocations by the Centre and the party was also responsible for the new Coal Mines Auction Act.