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.
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