GST Consultant K. Vijayrajesh addressing the members of various Contractors Association at an interaction session held at Rotary auditorium on JLB Road in
Mysuru: Goods and Services Tax (GST) Consultant K. Vijayrajesh has advised the contractors of Mysuru City Corporation (MCC) and Mysuru Urban Development Authority (MUDA) to sort out their tax-related issues by knocking on the doors of the Courts.
He was speaking at the interaction session jointly organised by MCC Contractors Association, Mysuru Circle Asphalt Mixing Unit Owners Association and MUDA Contractors Association, SC & ST Mysuru City and Taluk Contractors Association at Rotary auditorium on JLB Road here yesterday.
The Government has thrown its hands up saying that it cannot pay the tax when the contractors get the contract which is “Inclusive of Tax.” When there was VAT (Value Added Tax) system in place, then the contractors had to pay 4 percent tax. However, when GST was introduced then the contractors had to pay 18 percent tax. Since the officials in the Government related to the issue have not bothered to solve the problem, then the only option left is to go to the Court, he said.
“As the Government has refused to make up the difference in GST due to the increase in tax, the contractors are forced to pay the difference, thus affecting their profits. Indirect Tax is not something that should be paid on profits earned. That is something that needs to be paid because of the services rendered,” he explained.
High Court Advocate Naveen Gudikote, MCC Contractors Association President Chandrashekariah, MUDA Contractors Association Secretary C.D. Krishna and others were present.