KOCHI: At a time when most of the roads in the city are in rundown condition, civic contractors have decided to stop works including emergency road repairing, drain and canal cleaning which will worsen the situation. Contractors are boycotting works following uncertainties over levying goods and services tax (GST) in their bills. As a result, execution of Plan fund projects as per the time schedule stipulated by the state government will be hit. The contractors have demanded that the works taken up before June 30 should be exempted from the GST regime.
According to them, the GST structure will cause huge a tax burden for them. As per the new rules, contractors are supposed to file returns thrice a month and 18 per cent of the tax should be paid in advance. “Contractors often get their payment years after the completion of the work. Small scale contractors working for local bodies won’t be able to withstand such strict norms,” said a corporation contractor.
Based on the contractors’ complaints, the city corporation will write a letter to the state government seeking immediate intervention in the matter. Meanwhile, corporation works committee chairman P. M. Haris told DC that the deputy Mayor will convene a meeting with contractors’ association to address their grievances. “Since there is no clarity on levying GST for the works completed before June 30 and the works which had started by that date, both the local bodies and the contractors are confused. Though the contractors’ association has decided not to take up works until their concerns are addressed, we hope the issue can be resolved at the earliest,” he said.
