Govt Contractors protest against 18 pc GST

Contractors involved in implementing government projects have opposed Goods and Service Tax (GST) on the works. Addressing a press conference here today, Kalaburagi District Contractors’ Association President Jaganath G Shegaji said that the 18 per cent 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 per cent tax so far. Now, with the increase no contractor can sustain himself. 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 where representatives of contractors from six districts would present their woes with regard to the new tax. 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.