Photo Courtesy: nenow
Guwahati: Assam contractors are fighting back against a new government framework that puts tighter controls on Goods and Services Tax (GST) Input Tax Credit claims. Officials finalized the new rules on June 25 to root out fake invoices and bogus tax credit claims.
Commissioner of Taxes Jitu Doley led the meeting that set specific utilization ratios for different types of construction work. These benchmarks range from 30 percent for roads to 80 percent for power projects. Contractors warn these ceilings are arbitrary. They argue that tax credit eligibility shifts based on project needs and material consumption rather than flat government caps.
Industry representatives label the new standards as "illegal" because the national GST law includes no such limits. The groups fear this move will hike compliance costs and stall public works. They believe the state is using these audits to manufacture revenue to pay for welfare programs.
The government maintains the plan targets only bad actors. Officials claim they will review contractors exceeding the limits but will clear anyone with legitimate material records. The state also plans to force road builders to buy bitumen only from a pre-approved list of vendors. Contractors have asked the state to drop the benchmarks and stick to existing tax laws.
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