High Court had intervened in the Inter State Tax Policy of Telangana Government. The apex court had clarified that Inter State Tax can not be applicable between Telangana and Andhra Pradesh until March 2015. The court asked both the government to adhere to the G.O. No.43 which enables free trade between both the states till March 2015. This G.O. was given by the Governor during the President's rule before the two states came in to existence.
It is known that TRS government had issued orders to the officials to tax every vehicle that comes from Andhra Pradesh to Telangana. Telangana government is expecting 100 Crore income from these taxes.On the other side, if Seema Andhra imposes similar taxes, it is expected to get 80 Crores income in the form of taxes. Since Telangana is on 20 Crores higher side, KCR had resorted to this tax policy over writing the GO during President's Rule. We will have to see what will be the future course of action of Telangana government in this issue.