The Greater Visakha Municipal Corporation Contractors Association has decided to stop all the works from Thursday, in protest against the imposition of GST on the works that were undertaken under the value-added tax (VAT) regime.
The association contended that the revised scheduled rates (SoR) issued by the Board of Chief Engineers (BoC) after the GST regime came to effect had led to a reduction of rates and as a result, in the payment of bills 10 % to 16 % was being recovered and GST of 12 % was being added, contractors pointed out.
“The new SoR is resulting in reduction of payment for a ₹10 lakh project by ₹1.5 lakh. Apart from this, the GST is also being levied,” said association general secretary Gompa Chandramouli. Citing an example, the contractors said on a pavement work worth ₹8,755 has been reduced to ₹7,555 as per the post GST rates.
Memorandum submitted
“With no clarity on the GST for some time, 9.5 % towards the VAT was withheld before the remaining bill was paid. But, for the works completed after July 1 last year for which the agreement was reached as per the VAT regime, the new rates have been decided by the Board of Chief Engineers,” the association members alleged.
The association members submitted a memorandum to Municipal Commissioner M. Hari Narayanan on October 29, urging him to resolve the issue. “We are left with no option other than stopping the works from November 15, until the GST deadlock is resolved,” the association members said.
