the goan I network
PANAJI
The lack of clarity on the issue of Goods and Service Tax rates has kept several government tenders running into hundreds of crores of rupees on hold as both departments as well as government contractors await clarification from the government.
The uncertainty has been a cause of the paralysis since GST has come into force in July.
Among the contentious issues are the estimates to be drawn up as part of the tender process, change in tax slabs due to change in cost of material depending on the rate of GST applied to it, the amount the government is to deduct from contractors on account of taxes as well as a dispute between the government and the contractors on the Government Scheduled Rate or GSR.
The contractors are demanding that the government should consider additional tax on the scheduled rates while drawing up estimates.
Sources in the government have informed that the government is expected to clarify on several issues regarding the tender process in the coming weeks only then would the departments be able to move forward with their tenders.
Currently, most high spending departments including that of Public Works, Water Resources, Goa State Infrastructure Development Corporation, the Industrial Development Corporation, the Goa Tourism Development Corporation and others who construct major projects, have kept all tenders on hold
since July.
If the tenders are indeed floated, no contractors are coming forward on account of the uncertainty in rates.
Earlier last week, Chief Minister Manohar Parrikar admitted that tenders were on hold as the departments were yet to assess the impact of GST on
ISSUES
AT STAKE
Estimates to be drawn up as part of the tender process
Change in tax slabs due to change in cost of material depending on the rate of GST applied
Amount the govt is to deduct from contractors on account of taxes
Dispute between govt and contractors on Government Scheduled Rate
