The State of Andhra Pradesh was split in two on June 2, 2014. Ten districts in the northern region and the city of Hyderabad became the State of Telangana. The 29th state of India has a population of 35 million and Hyderabad is its capital. The existent VAT law will apply to both states until the new government makes modifications to the law. The VAT standard rate is 14.5%, reduced rates are 5% and 1%. It is necessary to monitor the development closely since changes are happening and they can have a serious impact on your business.
More information can be found at Telangana State Portal. http://www.telangana.gov.in/Pages/PortalHome.aspx