GST Cut TG's Revenue by ₹26.9k cr in 2024-25: Bhatti

STATING that Telangana's revenue fell short by ₹26,930 crore in 2024-25 due to the Goods and Services Tax (GST), Deputy Chief Minister Mallu Bhatti Vikramarka on Friday expressed apprehension that the state may suffer an additional loss of ₹7,000 crore if the proposed rationalisation of GST rates is implemented.

- EXPRESS NEWS SERVICE @ Hyderabad

Vikramarka raised 15 key points during the consultative meeting of various states on "GST Rate Rationalisation" held at Karnataka Bhavan in Delhi, under the aegis of the government of Karnataka.

"Had Telangana continued with VAT with fiscal freedom, revenues in 2024-25 would have been ₹69,373 crore. Under the GST regime, the state's revenues stood at just ₹42,443 crore. GST accounts for just 39% of Telangana's own tax revenues. Therefore, any reduction in GST rates impacts the state's revenues far more severely than Central revenues," he said.

He also expressed the fear that the proposed rationalisation of GST rates might further reduce the revenues of the state.

"Telangana is estimated to lose at least ₹5,100 crore due to the proposed rate rationalisation. Adding other losses, the impact will be nearly ₹7,000 crore, which will be around 15% of GST revenues. This will severely affect the state's overall financial condition. More than 80% of Telangana's revenues are committed to welfare expenditure," he said.