The cost of infrastructure projects, such as bridges, roads, and crematoriums, has started increasing in the city as the Goods and Services Tax (GST) rate has been increased for work contracts and sub-contracts. Local authorities, such as the Greater Chennai Corporation (GCC), have started feeling the pinch as estimates for a number of projects have to be revised owing to the rate changes. The GST rate for contracts involving pipeline work and the associated sub-contracts have been increased from 12% to 18%. As the rate changes recommended by the 47th GST Council were made effective from July 18, 2022, the GST for work contracts for infrastructure projects were increased from 12% to 18%. As a result, the original estimates were lower, and the civic body had to revise the estimates for such projects.

Source: The Hindu March 07, 2024 11:53 UTC