Andhra Pradesh Finance Minister Yanamala Ramakrishnudu wrote a letter to Arun Jaitley requesting him to consider reducing the GST rates on 10 goods and services, namely hardware, incense sticks, biogas, cashewrants, fertilizers, tractors, textiles, regional cinemas and granite slabs.
He said Andhra Pradesh had received several representations from trade and industry pointing at the need to reduce the tax burden in these categories.
Mr. Ramakrishnudu said in his letter the GST rates ought to be lesser than the combined rate of VAT, central excise and service tax lest it should trigger inflation and cause hardship to the consumers. The matter of high GST rates on the said goods and services should be placed in the GST Council meeting scheduled to be held on June 3.
It was mentioned that the GST Council had finalised the rates for most of the goods and services at its meeting held in Srinagar on May 18 and 19.
Mr. Ramakrishnudu observed that the high tax rates on fertilizers and tractors would add to the cost of farming directly thereby affect the incomes of farmers. The regional cinemas could not compete with Hindi and English movies whose budgets and markets were very huge. Therefore, the same rate of tax was unjustified. The tax rate on regional cinema may hence be reduced to 5%, he suggested.
