What are the implications of increased GST on Smart Cities?

21 Sep 2022 CW Team

GST is now the talk of the smart town. In the initial five years of the Smart Cities Mission, 12 per cent GST was applicable on certain construction projects, especially government buildings. However, for projects such as solid waste management, for instance, GST was not applicable. But after a recent reviewby the GST Council, the tax has witnessed an increase from 12 per cent to 18 per cent.

What happens when smart cities are considered companies and not municipal corporations or government entities? And how does the GST of 18 per cent impact suppliers and service providers who are providing support to these cities?
Trimbak Dhengale Patil, CEO, Solapur Smart City, says “It would be beneficial if GST is not applicable to projects under the Smart Cities Mission so that the tax amount can be allocated to its potential. Currently, as we pay the Government back the moneyit has provided us, the amount is just going around in circles. Additionally, instead of questioning if it should go from 12 per cent to 18 per cent, I believe it should just be zero.”

Meanwhile, Sandeep Malvi, CEO, Thane Smart City, shares that this increase will hamper the project cost as all the estimates have been drawn considering the 12 per cent GST. “However, as it is a government decision, we have to follow the rules.”

To read the full article, CLICK HERE.

Resources

09 Mar 2026

Haworth India Hosts Women’s Leadership Panel Series

Haworth India marked International Women’s Day by hosting a leadership roundtable series titled ‘Give to Gain’, bringing together senior women leaders from architecture and design firms, corporates and project management consultancies. The series has been conducted in Delhi and Mumbai, with upcoming sessions scheduled in Bengaluru and Hyderabad on 27 March 2026. Structured as moderated panel discussions followed by audience interaction, the initiative examined the business impact of women’s leadership and the role of inclusive workplaces in supporting professional growth. Manish Khan..

Max Estates Secures RERA For Max One Project

Max Estates has secured RERA approval (UPRERA No.: UPRERAPRJ9759) for its Max One development around Max Towers in Sector 16B, Noida, bringing renewed progress to a project previously stalled following the insolvency of its earlier developer. Spread across around 10 acres with an estimated development potential of about 2.5 million sq ft, Max One is planned as an integrated mixed-use campus combining serviced residences, premium offices, retail spaces and a private club. The project is expected to generate total sales potential of about Rs 20 billion along with an estimated annuity rental inc..

Hindware Introduces Starc Smart Wall Mount Toilet

Hindware has introduced the Starc Smart Wall-Mount Toilet under its Hindware Italian Collection, designed to combine automation, hygiene and contemporary bathroom aesthetics. The model features automatic flushing, sensor-based seat opening and closing, and remote-controlled functions. It also includes an oscillating water spray and warm air dryer for cleaning, along with a self-cleaning nozzle designed to maintain hygiene. Additional features include adjustable heated seating, customisable water temperature and pressure settings, a foot-touch flush system and an LCD control interface. The wa..