Contractors’ strike call to stall ongoing devpt worksContractors’ strike call to stall ongoing devpt works

Source: The Hitavada      Date: 12 Aug 2017 10:26:58


Staff Reporter,


Contractors in Chhattisgarh to go on indefinite strike from today

CCA demands to bring down 18 per cent GST slab to 5 per cent

On the call of Chhattisgarh Contractor’s Association (CCA), all government recognized contractors in the State will go on an indefinite strike from Saturday by stopping all underway construction works of the Government departments. The contractors are demanding exemption from Goods and Services Tax (GST) on the tenders sanctioned before July 1, 2017.

Talking to mediapersons here on Friday, CCA President Biresh Shukla said, prices of cement, stone, murrum and other minor minerals has hiked after implementation of the Goods and Services Tax .

The contractors are facing a serious problem to bear the loss after the implementation of the new tax rate. Government construction works worth Rs 10,000 crore allotted before July 1 in 2017 is underway in Chhattisgarh. After implementation of the GST, the contractors will have to suffer an additional burden of about Rs 1,800 crore, the CCA President pointed. The CCA has demanded the Central government and the State government to bring down slab of 18 per cent GST on construction works to 5 per cent.

Biresh Shukla said that the government should bear the additional burden of GST implemented on construction works sanctioned before July 1. Shukla said that earlier the contractors had to pay 2 per cent sale tax on construction works.

“If 18 per cent GST is imposed on the underway construction works allotted prior to July 1, the contractors will have to undergo an additional burden of around Rs 1800 crore,” the CCA President said and added that either the state government or the Centre should bear the additional burden. Biresh Shukla alleged that contractors were not consulted to fix the GST rate for construction division before its implementation.

The Association has submitted a memorandum to Governor, Chief Minister, Chief Secretary and all Secretaries, demanding to exempt the construction works tenders allotted before July 1, 2017 from GST but no response has come from the government side, he said. The CCA has also demanded the government to bring similarity in the clauses of tender form for all construction works of the government departments. At present, there is no similarity in the clauses because of this officials are taking undue advantage of it and benefiting contractors of their choice, Biresh Shukla claimed.

The CCA President said that if contractors’ demands are not fulfilled, they will not participate in the tender processes for new construction works.
At present, over 10,000 contractors and 84,000 labourers are working in the construction sector in the State.