Telangana Prepares for GST Rate Changes Amid Potential Revenue Loss

Telangana is set for the GST rate rationalisation with new reforms starting today. Commissioner K Haritha ensured sensitisation at the field level, although potential technical issues may surface next month. Deputy Chief Minister Mallu Bhatti Vikramarka expressed concerns about annual revenue loss and asked for central compensation.

Devdiscourse News Desk | Hyderabad | Updated: 22-09-2025 11:22 IST | Created: 22-09-2025 11:22 IST

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Telangana is poised for a major GST overhaul as new rate rationalisations take effect. K Haritha, the state's Commissioner of Commercial Taxes, confirmed that sensitisation initiatives have been conducted at the field level to prepare for the changes.

While Haritha assured that no technical issues are expected from their department, she acknowledged potential glitches might surface when traders and taxpayers file returns next month. The adjustments mean entrepreneurs need to update their billing systems to align with the new tax regime.

With only two tax slabs remaining, 5 and 18 percent, the new structure is set to significantly impact the state's revenue. Deputy Chief Minister Mallu Bhatti Vikramarka anticipates a tax revenue shortfall of approximately Rs 7,000 crore annually, urging the central government to provide compensation for the potential financial gap.

(With inputs from agencies.)