MDMK councillor flags misuse of GST in road cut charges; seeks action against contractors
CHENNAI: During the Greater Chennai Corporation (GCC) council meeting on Wednesday, MDMK councillor S Jeevan voiced concerns over the 18% GST collected from the public for road cuts made during new service connections, alleging that the tax component was being usurped by private contractors instead of being deposited with the Chennai Metro Water Supply and Sewerage Board (CMWSSB).
He stated that the public are charged Rs 7,500 for new drainage connections with an additional Rs 5,200 per metre for road cuts and 18% GST.
Previously, CMWSSB handled road cuts directly after obtaining GCC's permission and compensated the corporation for road repairs. Since January, private contractors have been hired for these works and are paid the full amount, including GST. Jeevan alleged that the contractors failed to properly restore roads after pocketing the money. He claimed that the actual CMWSSB road cutting costs range between Rs 1,100-Rs 1,700 per metre up to 10m, much lower than what is being charged, he said.
He added that photographs of roads not being repaired properly were submitted to Mayor R Priya and urged the corporation to hold talks with CMWSSB to stop engaging contractors.
Mayor Priya assured that the matter would be discussed with relevant departments.
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