Hyderabad, Jan.5 (RAHNUMA): Minister for Tourism, Culture and Excise Jupally Krishna Rao on Monday moved the Telangana Goods and Services Tax (Amendment) Bill, 2026 in the State Legislative Assembly on behalf of Chief Minister A. Revanth Reddy.
Moving the Bill, the Minister explained that the proposed amendments are in line with the recommendations of the Goods and Services Tax (GST) Council, a constitutional body comprising the Union Finance Minister as Chairperson and the Finance Ministers of all States as members. The GST Council periodically reviews the implementation of GST across the country and recommends amendments to the GST Acts and Rules to ensure uniformity and smooth administration.
He informed the House that the GST Council, in its 51st to 55th meetings, had recommended several amendments to the Central GST Act, Integrated GST Act and related rules. While the Central government had already carried out the amendments, similar changes were pending in some States, including Telangana.
In its 55th meeting, the GST Council decided that all States should complete amendments to their respective State GST Acts by September 30, 2025, to maintain uniformity in GST implementation across the country.
In accordance with this decision, the Telangana government had promulgated Ordinance No. 6 of 2025, which was published in the Gazette on November 11, 2025. The present Bill seeks to replace the said Ordinance.
Explaining the salient features of the Bill, the Minister said that a new provision has been introduced to enable reclassification of assessment proceedings between fraud and non-fraud cases, as warranted by facts, through the insertion of Section 74A.
He stated that, in line with the Supreme Court judgment, Extra Neutral Alcohol used in the manufacture of liquor for human consumption has been kept outside the ambit of GST through an amendment to Section 9.
The Bill also proposes to replace the term “plant or machinery” with “plant and machinery” to address issues arising out of the Supreme Court’s ruling in the Safari Retreats case. Special procedures have been introduced for GST compliance by manufacturers of pan masala and tobacco products.
Further, clarity has been provided on the manner of distribution of input tax credit by Input Service Distributors, along with amendments to certain definitions such as “Input Service Distributor”, “local fund” and “municipal fund” to remove ambiguities in interpretation.
The Bill also includes amendments relating to appeals before the first appellate authority and the GST Appellate Tribunals, besides other provisions concerning registration, taxability of vouchers, return filing, summons and e-commerce operations.
The Minister stated that the amendments would strengthen GST administration, bring clarity in tax provisions and ensure consistency with the national GST framework.
