Telangana Finance Minister Mallu Bhatti Vikramarka said proposed changes to GST refunds on motor vehicles could reduce the state’s revenue by more than ₹800 crore a year. He urged the federal government to disclose the full impact before implementing the reforms.
Speaking at the 57th GST Council meeting, Vikramarka asked the Centre to share the financial implications of changes to refunds on motor vehicles, capital goods and input services before they take effect. GST accounts for about 35% of Telangana’s own tax revenue, he said. Any drop in collections could affect spending on schools, hospitals, welfare programmes and infrastructure.
Vikramarka backed simpler compliance for honest taxpayers but said it should go hand in hand with tougher action against deliberate evasion. He called for strict measures against fake GST registrations, fraudulent invoices and the misuse of Aadhaar and PAN details. In some cases, he said, personal data belonging to elderly people, homemakers and daily-wage workers had been used to create fraudulent registrations.
He also highlighted tax evasion in the scrap trade, where informal, cash-based transactions can facilitate fake invoicing and fraudulent transfers of input tax credit. Telangana proposed a GST Council Group of Ministers to examine the scrap sector and identity theft and recommend an action plan.
Vikramarka urged the Centre to establish regional offices of the GST Network and the GST Council Secretariat in Hyderabad, citing the city’s technology, data analytics and artificial intelligence capabilities. He also sought a specific, transparent share for states from the Health Security and National Security Cesses to strengthen public health infrastructure.