On behalf of the Indian Railway Infrastructure Providers Association (IRIPA), contractors of the East Coast Railways, Khordha Road Division would resort to a cease-work from August 21 if their demands are not met, informed ECoR Contractors’ Association president Pravat Kumar Mishra at a Press meet here on Friday.
The IRIPA had submitted a memorandum to the Prime Minster on August 14 demanding bearing of extra burden caused due to the Goods and Service Tax on the ongoing works for which contracts were finalised before June 30 and the tenders quoted before July 1.
Mishra said they were earlier paying four per cent tax but after the GST the tax rate has increased to 12 per cent.
They demanded that the railways should bear the CGST and SGST tax liability as per the fundamental principles of the Act under which purchasers of goods and services have to bear the burden of the tax and the sellers (contractors) should not swallow the same.
We are not able to absorb the extra burden of the GST on the old works that they have taken, added Mishra.
The memorandum was also submitted to the Chief Minister, Chief Secretary, Indian Railways General Manger and Khordha Divisional Railway Manager.