Deputy CM Bhatti participates in 55th GST council meeting, proposes key measures

Mallu Bhatti Vikramarka
| Photo Credit: NAGARA GOPAL

Deputy Chief Minister Mallu Bhatti Vikramarka, who also holds the Finance, Planning, and Energy portfolios of Finance, Planning, and Energy, attended the 55th meeting of the Goods and Services Tax (GST) Council on Saturday in Jaisalmer, Rajasthan. The meeting, chaired by Union Finance Minister Nirmala Sitharaman, deliberated on several taxation and policy matters.

During discussions on the applicable tax rate for delivery services provided through e-commerce operators, Mr. Bhatti Vikramarka proposed the formation of a Committee of Officers to examine the issue in greater detail. The Council approved the proposal and included Telangana officers in the committee.

On the closure of the Group of Ministers (GoM) constituted in 2019 to analyse GST revenue, the Deputy Chief Minister recommended reconstituting the GoM to facilitate State-wise and sector-wise revenue analysis. The Council accepted the suggestion, acknowledging its importance for informed policy decisions.

The Deputy Chief Minister also addressed the recovery of excess ad-hoc Integrated GST (IGST) apportionment made in previous years. He highlighted that the recovery should align with the base revenue formula of 2015-16, rather than the latest revenue period. He further requested that recoveries, if necessary, be deferred to the next financial year to avoid fiscal strain on states. The Council agreed to these recommendations.

Opposing a proposal to bring Aviation Turbine Fuel (ATF) under GST, the Deputy Chief Minister argued that States currently have limited revenue sources and that ATF, derived from crude oil, is already taxed under State VAT. Several States supported Telangana’s stance, and the Council decided to maintain the status quo.

In response to Andhra Pradesh’s request to levy a 1% cess on B2B transactions under GST to fund flood rehabilitation efforts, Mr. Bhatti Vikramarka sought similar provisions for Telangana, citing extensive damages caused by the same calamity. The Council referred the matter to a Group of Ministers, with Telangana included in the discussions. Principal Secretary Revenue (CT & Excise) Department, S.A.M. Rizvi and Special Secretary Special Secretary to DyCM & Finance Minister Krishna Bhaskar were present at the meeting.