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Builders want GST exemption for govt projects finalised before June 30

The industry body held a meeting with its members to discuss the challenges and the impact of GST

Press Trust of India  |  Hyderabad 

Builders
Representational image

The Association of India on Friday demanded that the Goods and Services Tax (GST) Council exempt all government projects, finalised before June 30, 2017 from the purview and insisted on implementation of the old tax structure of Value Added Tax (VAT) for it.

"We are facing a lot of difficulties with the existing projects which have been sanctioned before June 30, 2017. All the members of the association who are executing the are facing problems on implementation of GST, and have also resolved to follow the existing procedure in tax structure that is VAT," S N Reddy, national, vice- president of the association said in a statement.

The industry body held a meeting with its members to discuss the challenges and the impact of implementation and its effect on the construction and infra industry, particularly on the ongoing projects.

"The hasty implementation of has made all these existing projects unviable as the impact of the new tax regime was not incorporated at the time of working out the project costs," Reddy said.

The regime warrants us to pay the applicable upfront and claim the input tax credit. This is further increasing the cost burden on the projects, he added.

First Published: Fri, September 08 2017. 20:06 IST
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