Mon Sep 08 20:12:48 UTC 2025: Okay, here’s a summary of the article and a rewritten version as a news report:

**Summary:**

The Federation of Telangana Chambers of Commerce and Industry (FTCCI) welcomes recent GST rate rationalization but calls for the inclusion of petrol, diesel, ATF, and natural gas under GST to eliminate cascading taxes. They also request optional higher GST rates with ITC for B2B transactions (especially in hospitality), review of compensation cess on coal due to the increased GST rate, and timely clarifications on goods and services classification. The FTCCI expresses concern over the sharp GST hike on coal and the reduction of GST on hotel accommodation without ITC. CII Telangana also praises GST 2.0 reforms for benefiting MSMEs and boosting economic growth through simplified compliance and faster refunds.

**News Article:**

**Telangana Industry Leaders Applaud GST Reforms, Push for Broader Inclusion and Rate Adjustments**

**HYDERABAD – September 9, 2025** – The Federation of Telangana Chambers of Commerce and Industry (FTCCI) has commended the recent Goods and Services Tax (GST) rate rationalization as a significant step towards a more streamlined tax system. However, the industry body is urging the government to expand the GST’s scope to include key petroleum products and address several remaining concerns about the new structure.

“Bringing petrol, diesel, aviation turbine fuel (ATF), and natural gas under the GST framework remains a long-standing demand of the industry,” stated FTCCI President R. Ravi Kumar. “This is crucial to eliminating cascading taxes and fostering a more competitive business environment.”

The FTCCI is also advocating for optional higher GST rates with input tax credit (ITC) for Business-to-Business (B2B) transactions, particularly within the hospitality sector, to prevent tax leakage and maintain a seamless credit chain. The industry leaders voiced concerns over the recent sharp GST increase on coal (from 5% to 18%), stating it could significantly impact energy-intensive sectors like steel, cement, and aluminium, potentially driving up costs and fueling inflation. They call for a review of the compensation cess on coal to mitigate the impact.

Another point of contention is the reduction in GST on hotel accommodation (up to ₹7,500/day) to 5% *without* ITC. The FTCCI believes this undermines the core principle of GST, a seamless credit flow, and suggests a dual-rate system allowing businesses to claim ITC.

While highlighting these concerns, the FTCCI acknowledged the benefits of other GST changes, including the reduction in GST on cement and man-made textiles.

Meanwhile, the Confederation of Indian Industry (CII) Telangana has hailed the GST 2.0 reforms as a “landmark move” poised to benefit Micro, Small, and Medium Enterprises (MSMEs) and the agriculture sector. R.S. Reddy, chairman of CII Telangana, believes the reforms will spur economic growth by simplifying compliance, accelerating refund cycles, and streamlining input tax credit mechanisms. “The MSME sector, the backbone of our economy, stands to gain immensely from the simplified compliance structure,” he said. The CII further stated that the reforms are expected to increase formalization and empower small businesses to expand across state borders more easily.

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