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GST Rate Cuts Will Make Mumbai Metro Cheaper To Build

Swarajya Staff

May 18, 2018, 09:01 AM | Updated 09:01 AM IST


Tunneling for Mumbai Metro’s Line 3 at Mahim (Kunal Patil/Hindustan Times via Getty Images)
Tunneling for Mumbai Metro’s Line 3 at Mahim (Kunal Patil/Hindustan Times via Getty Images)

Following a change in the Goods and Services Tax (GST) rates that brought the cost of construction down from 18 per cent to 12 per cent, the Government of Maharashtra has asked for a rebate from contractors involved in the construction of the project, reports DNA. The matter was decided at a recent meeting between the Mumbai Metropolitan Region Development Authority (MMRDA) and the companies engaged in metro construction.

However, contractors have said that they may not be refund the entire 6 per cent difference. At an earlier meeting with the Commission of Goods and Services Tax, the commissioner’s office has said that an audit – either by an internal agency or an independent one – has to be conducted, receipts examined, input tax credit has to be examined and only then only can the rebate amount be derived.

While most construction projects see their costs going up in the final stages, the rebate might help Mumbai absorb that increase.


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