FTCCI Celebrates Game-Changing GST Tweaks: Urges Inclusion of Petrol and Diesel for Economic Empowerment!
The Federation of Telangana Chambers of Commerce and Industry (FTCCI) has hailed the recent Goods and Services Tax (GST) rate rationalization as a pivotal move towards a simpler and more inclusive tax framework. The organization emphasizes the necessity of incorporating petrol and diesel into the GST system, a long-standing request from industry leaders aimed at eliminating cascading taxes. Currently, these fuels are subjected to varying state-level VAT and sales tax, complicating compliance for businesses.
FTCCI president R. Ravi Kumar, leading the charge for this inclusion, stated that the continual exclusion of essential commodities like petrol, diesel, aviation turbine fuel (ATF), and natural gas hampers competitiveness, particularly for energy-intensive industries and logistics firms. The call for clear timelines on their integration into the GST framework reflects desperation within the industry to streamline operations and remove tax burdens.
In welcoming the latest GST announcements, FTCCI leaders also highlighted several additional issues, such as the introduction of optional higher GST rates that would allow businesses to claim input tax credits (ITC) in Business-to-Business (B2B) transactions, especially in the hospitality sector. This measure is expected to maintain a seamless credit chain and prevent input tax leakage, essential for fostering a robust business environment.
Another significant concern raised was the review of the compensation cess on coal following its GST increase from 5% to 18%. The FTCCI articulated that this sharp hike poses a serious challenge to energy-intensive sectors such as steel, cement, and aluminum by increasing operational costs and fueling inflationary pressures. They urged the government to reassess the compensation cess to mitigate these impacts, ensuring a healthier economic landscape.
Additionally, the trade body stressed the importance of timely clarifications and circulars regarding the revised GST classification for goods and services under the new slab rates of 5%, 18%, and the newly introduced 40% bracket. These updates are seen as necessary to reduce litigation and standardize implementation across states, ensuring fairness in the GST landscape.
While the reduction of GST on hotel accommodations to 5% (for stays under ₹7,500 per day) was welcomed, concerns lingered over the lack of ITC claims associated with this rate. FTCCI senior vice-president KK Maheshwari suggested the introduction of dual-rate options to preserve the seamless tax credit flow that GST was meant to support.
The ongoing evolution of GST policies appears to position micro, small, and medium enterprises (MSMEs), food, and agriculture sectors for considerable growth. CII Telangana chairman R.S. Reddy and vice-chairman M. Goutham Reddy voiced optimism that the rollout of GST 2.0 reforms would benefit these crucial sectors, enhancing simplified compliance structures and improving cash flow for enterprises through faster refund cycles and streamlined ITC mechanisms.
Overall, the implications of GST 2.0 promise to enhance compliance without burdening taxpayers, specifically catering to honest tax contributors, including the salaried middle class. As regulatory updates continue to unfold, the business community in Telangana remains vigilant, anticipating legislative changes that could spur economic growth and operational efficiencies across diverse industries.
Original Source: https://www.thehindu.com/news/national/telangana/ftcci-hails-gst-tweaks-bats-for-bringing-petrol-and-diesel-under-levy/article70025424.ece
Category : Telangana
Tags:
Publish Date: 2025-09-09 01:42:00
