State welcomed the new tax structure for ease of doing business: Yanamala

The Goods and Services Tax (GST) Council has decided to exempt prasadam and human hair at the Tirumala Tirupati Devasthanams (TTD) from tax following a request by the State government.

At the 17th GST Council meeting held in New Delhi on Sunday, AP Finance Minister Yanamala Ramakrishnudu said the TTD was a reputed religious trust involved in services to lakhs of devotees every day. Hence, the TTD be exempted from GST registration. With regard to other services, the State would take necessary action within its purview.

The Council also decided the lowest rate of 5% on dry fish. This would not affect fishermen as only an income of ₹20 lakh would attract tax. On houses for the economically weaker sections where land is provided by the government, Mr. Ramakrishnudu requested the Council to reduce the tax on work contractors from 18% to 12%. However, there would not be any tax where the houses are constructed by the Government Housing Corporation or individuals themselves, without involving contractors. The State government also supported the anti profiteering rules discussed in the GST Council. Because any reduction in rate of tax should be passed on by the traders to the consumers.

The Minister said the government supported exemption from tax for food grains though the State would lose ₹1,000 crores per annum. The Council reduced the originally proposed rates on Agarbathis, biogas, cashew nut etc from 12% to 5% and also several items from 28% to 18% including cinemas with ticket value less than ₹100 due to our efforts, he said.

Mr. Ramakrishnudu said the State government welcomed the GST for ease of doing business. And also endorsed the decision of the Council to abolish all border check posts as it would eliminate harassment and delays to the movement of goods vehicles. However, to arrest leakages and protect revenues, it advocated the e-way bill system in the country, he said.