Pay Parking Projects Still On Hold Owing To GST Issues

The multi-level pay parking project, the foundation of which was laid in September 2015 by the Margao Municipal Council’s (MMC), is still on hold owing to various GST issues. The major issue is of the calculation of the right GST amount for the project.

The municipality has so far been unable to get the GST calculations for the project right. Moreover, the contractor who was supposed to take the project refused to pay any tax. Seeking help with the project, the MMC had referred the task of calculating GST to the PWD around four months back. The PWD provided the necessary assistance along with the guidance on the calculation of the GST on involved items in the file sent back to the MMC.

The MMC, in turn, worked out the tax details for each taxable item in the project and sent it back to the PWD for verification. The PWD, however, found errors in tax calculations and asked the MMC to make the changes. As of now, the file is still being transferred from one department to another to no avail, while the Rs 6.5 crore project stays on hold.

Read Also: Mumbai Metro May Get Cheaper With 6% Rebate After GST Shrinkage

Babita Angle Prabhudessai, the MMC chairperson, has also admitted that the error in GST calculations has been a major reason behind the delay in the project.

The multi-level pay parking project was first announced in 2015, with the foundation stone laid in September 2015. The initial delays in the project were attributed to delay in obtaining the necessary permission from the various authorities and then, to the change in GSR (Goa Schedule of Rates) which demanded a revision of project estimated before tenders could be invited. However, the introduction of the GST has been the biggest blow resulting in the contractor refusing to pay the GST burden.

The MMC will contribute 3 crores received from the government on the occasion of the state’s golden jubilee (50 years of liberation) in 2011 in the project, while the remaining amount is expected to be collected from other unutilized funds of the MMC.

The project involves the construction of a multi-level parking structure, comprising of a basement and six floors, on an area of around 5,000 sq meters. The building is expected to provide the parking facility for up to 113 four-wheelers and 42 two-wheelers, along with a maintenance unit on the top floor.