After the GST rollout, instead of elimination of cascading effects from prevailing indirect tax regime, the contractors have to pay GST two times. As reported, the contractors are not getting the benefits of Goods and Services Tax Rebate. Therefore, they have to pay GST twice.
Generally, 40% of the amount is spent on machine and diesel and this expenditure is out of GST ambit. Further, they pay GST on petrol and diesel as well. Likewise, they pay GST again on petrol and diesel that is 12%. On the other side, Mining department cut down the royalty charges without issuing passes. Therefore, their vehicles are charged for illegal excavation and transportation. Frustrated contractors have asked to fulfil their demand in order to remove discord.
In response, the contractors locked the office of chief engineer in Department of Public Buildings. After that, officers and workers were not able to enter the office premises. In the evening, chief engineer gave assurance to provide a solution to the payment irregularities of the contractors till 16th April. The higher officials were also informed about the demands which are away from the governance. They also said that if their demands are not fulfilled till 16th April, they will go on strike again. During all this process, the president fraternity of contractors group was present there.
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Contractors also mentioned that previously the performance duration of 20 MM roads was one year which is extended to three years now. However, during the road making, no SOR has been modified with additional provisions. Therefore, contractors have to bear the loss. So, they demand a year performance guarantee on newly build 20 MM Damar roads.
