Business Economy


Telangana Dy CM Bhatti seeks protection of states’ revenue interests in GST reforms

New Delhi/Hyderabad, Oct 8 (UNI) Telangana Deputy Chief Minister and Finance Minister Bhatti Vikramarka Mallu on Thursday urged the Centre to protect the revenue interests of states while pursuing GST reforms and called for greater consultation and consensus before making major changes to the tax regime.
Speaking at the 57th GST Council meeting, Bhatti said mutual trust between the Centre and states was the foundation of the GST system.
He said states had surrendered a significant part of their taxation powers with the expectation that a unified national market would strengthen the economy and stressed that both sides should work as partners.
Bhatti said GST contributes around 35 per cent of Telangana’s own tax revenue, which supports schools, hospitals, welfare programmes and infrastructure.
He urged the Centre to assess and share the full financial impact of proposed changes before implementation.
He said Telangana could face an annual revenue impact of around Rs 800 crore from proposed changes relating to motor vehicles, while the State’s assessment indicated that the actual loss could be more than double that amount.
The Deputy Chief Minister supported automatic GST registration in appropriate cases, quicker processing of registration amendments and cancellations, and automatic refunds for low-risk taxpayers.
He also called for simpler returns, rationalisation of penalties and measures to reduce unnecessary stoppage of goods vehicles.
Bhatti sought stringent action against fake GST registrations, identity theft, fake invoices and fraudulent input tax credit.
He said Aadhaar and PAN details of elderly persons, homemakers and daily-wage workers were being misused in some cases and urged strict action against organised tax fraud.
He proposed a Group of Ministers under the GST Council to examine tax evasion and identity theft in the scrap sector while protecting the interests of waste collectors and small scrap dealers.
Bhatti also sought greater representation for Telangana in GST committees and proposed setting up regional offices of GSTN and the GST Council Secretariat in Hyderabad, citing the city’s strengths in technology, data analytics and artificial intelligence.
He urged the Centre to ensure adequate support for export-oriented states, continue inspection powers for both originating and destination states, and provide a transparent share to states from Health Security and National Security Cesses.
Bhatti said GST revenue ultimately belonged to the people and called for a system that made compliance easier for honest taxpayers while maintaining zero tolerance towards deliberate tax evasion, according to an official statement.
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