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BHOPAL: The Madhya Pradesh Panchayat Sachiv Sanghthan has alleged that vendors are charging them Goods and Services Tax (GST) for construction works against the established law.

A delegation of the Panchayat Sachiv Sanghthan met the additional chief secretary of the panchayat and rural development department, Manoj Shrivsatava, on Tuesday and submitted the memorandum demanding action against vendors charging GST from the panchayats.

“ACS, after understanding the matter, spoke to the commissioner, commercial tax, Raghvendra Singh, and asked him to issue instructions so that GST isn’t charged for panchayat construction works,” said Dinesh Sharma, state president of the Panchayat Sanghthan.

He said that some groups of vendors had formed a caucus and was doing it in an organised manner. They are charging 18%-28% GST on construction material meant for panchayats. All panchayat construction works are exempted from GST as it is falls under category meant for development.

“Earlier, the then ACS had fixed a rate of Rs 850 per square metre for concrete construction. But, in the present circumstances, vendors have started charging 28% GST after which only Rs 612 per square metre are left for construction. This leads to poor construction quality,” said Sharma.

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