What are the implications of increased GST on Smart Cities?
SMART CITIES

What are the implications of increased GST on Smart Cities?

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.

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.

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?