The goods and services tax has made a roadblock for the first ‘green bus‘ project initiated on the behest of Union Transport Minister Nitin Gadkari on 6th December 2016.
The project was signed between the operator, Scania India and Nagpur Municipal Corporation (NMC). The NMC’s Transport Committee Chairman later stated that the dispute has been come to end with no official announcement.
The issue also delayed payments worth 9 crore which has to be done by the Nagpur Municipal Corporation (NMC). Scania India had also warned the NMC to discontinue the services if payment were not made on time.
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One of the officials mentioned that, “GST is not applicable and hence the company has been assured it won’t have to pay the tax amount of about Rs 1.50 crore and that the NMC will give a written undertaking for the responsibility for non-application of GST.”
“We will pay the dues pending up to March worth Rs 7.25 crore. The company will now take a call and let us know about it,” he added
However, the STS buses are rarely being used by the passengers due to its high ticket charges. Still, the NMC is hoping to make it more popular with the commuters and trying to reduce the ticket prices.
Recently 29th GST council meeting has been numb on the multiple issues raised by the industries. But made an attempt to attract online payment more lucrative to everyone.
In the move, the government has approved 20 per cent cash back on the GST paid on all the B2C transactions done by the means of BHIM, RuPay, UPI.
