GST hits Southern Railway repair works
Many of the work bills are pending due to the confusion in the GST clauses.
Kozhikode: The implementation of GST is creating problems for the contractors undertaking the Southern Railway’s repair work. Many of the work bills are pending due to the confusion in the GST clauses. Earlier, the contractors had stopped the work demanding that the railway should bear the GST burden. They withdrew the protest after the Railway Board requested the GST council to find an amicable solution to the memorandum submitted by the contractors.
According to contractors, the bill with GST is causing hefty financial losses. When the contractors purchase materials for repair work, they give GST for the items. However, when the railway sanctions the bills, the authorities impose GST on the total work bringing losses to the contractors. Mr M. K. Gopinath, Public Relations Officer, Palakkad Division of Southern Railway, said that the work was going on without any issue. “Though the contractors had some issues with the GST implementation, after the railway took a favourable stand by forwarding their memorandum to the GST council, they are co-operating and the works have been resumed. According to our engineering department, no work is delayed now,” he said.
The PRO added that there are issues in the sanctioning of bills from the financial section due to the confusion over the different types of codes, taxes and percentages regarding various works. “The finance department is in a better position compared to the earlier days of GST introduction and could clarify the doubts of contractors. We hope the remaining issues would also be sorted out quickly,” he added.