Contractors involved in implementing government projects have opposed imposition of Goods and Service Tax (GST) on them.
Addressing a media conference here on Saturday, Jagannath G. Shegaji, president of Kalaburagi District Contractors’ Association, said that the 18% GST on government works would be a serious blow to the contractors. He demanded that the GST costs be included in the tender amount. “Estimate of government works is made with 5 to 10 per cent margin to contractors. We used to pay 5% tax so far. Now, the hike has come. No contractor can sustain himself with such huge tax costs. The government should include GST costs in the estimate while calling tenders.”
Mr. Shegaji said that a meeting with officials of the Commercial Taxes department would soon be held in Kalaburagi where representatives of contractors from six districts would present their woes with regard to the new tax regime.
Mr. Shegaji warned that contractors would go on strike, stopping all ongoing works of government projects, if their demand was not considered by the Union government.
Channayya Mutt, Sanjay R.K., Ashok Houde, Saradarayya R. Guttedar and other leading contractors were present.
