Telangana Ready to Implement Next-Gen GST With Two-Slab Structure
The state gears up for 5% and 18% GST slabs; traders are advised to update systems.
Telangana is fully prepared to implement the next-generation Goods and Services Tax (GST) regime, effective today, with field-level sensitization already completed, said K. Haritha, Commissioner of Commercial Taxes, on Monday. The simplified tax structure, featuring two slabs of 5% and 18%, aims to streamline compliance and boost economic activity, but potential technical glitches may only surface next month when traders and taxpayers file returns.
Haritha confirmed that notifications aligning with the GST Council’s decisions have been issued, focusing on rate reductions and rationalization for goods and services. With approximately 5.3 lakh GST registrations in Telangana, she emphasized the need for taxpayers to update their billing systems to reflect the new rates. “From our side, there are no technical glitches as such,” Haritha told PTI, expressing confidence in the GST Network’s ability to address any issues.
The reforms, part of the GST 2.0 initiative approved in the 56th GST Council meeting, reduce the previous four-tier structure (5%, 12%, 18%, and 28%) to two main slabs, with a 40% rate for luxury and sin goods. This overhaul aims to enhance transparency and ease compliance. However, Telangana Deputy Chief Minister Mallu Bhatti Vikramarka warned that the state could lose approximately Rs 7,000 crore in annual tax revenue due to the rate cuts, urging the central government to provide compensation.
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Officials are closely monitoring ground-level implementation to ensure a smooth transition. The reforms are expected to benefit consumers and businesses, though the state remains cautious about their fiscal implications.
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