A fresh approval to construct 1,000 2BHKs in each of the Assembly constituencies except GHMC limits has been accorded.

 Telangana finance minister Etela Rajende
Telangana finance minister Etela Rajende

Hyderabad: The Telangana state government has sought exemption from service tax for the affordable housing segment under the GST regime.

It brought to the notice of the Centre the state government’s plans to implement affordable housing schemes for the poor and lower-middle class and argued that the service tax under the GST regime will have a negative impact on the affordable housing segment.

The government has taken up the 2BHK housing scheme for the poor on priority basis. Already it has accorded approval for the construction of 2.70 lakh 2BHKs across the state including GHMC areas for which tenders have been invited and are in various stages of finalisation.

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Finance minister Etela Rajender said, “If service tax is imposed, it will impact the affordable housing segment. On the one hand the Centre and state governments are implementing 'housing for all' schemes and if service tax is imposed it will adversely affect these projects. Contractors will not come forward to take up works for affordable housing schemes.”