Kerala to Forego Rs 741 Cr by Exempting GST Share for Ernakulam Bypass & Kollam-Chengotta Road Work
By: Admin
July 19, 2024
Categories: GST Recent News
4 Min Read
Kerala Government Exempts GST and Royalty for National Highway Projects
In a significant move aimed at boosting infrastructure development, the Kerala state government has decided to waive off Rs 741.35 crores in state shares of GST and royalty on construction materials. This exemption is specifically directed towards two critical projects: the Ernakulam Bypass (NH 544) and the Kollam-Chengotta Road (NH 744).
Background and Decision
The decision follows a directive from the Union Minister of Road Transport and Highways, exempting Kerala from sharing 25% of the land acquisition costs for these projects. Subsequently, the Minister encouraged the state government to explore further exemptions, including GST and royalty.
Financial Impact
According to estimates from the National Highways Authority of India (NHAI), the state’s share of GST amounts to Rs 254.4 crores for the Ernakulam Bypass and Rs 173.7 crores for the Kollam-Chengotta Road.
Exemption Conditions
Under the new provisions, the Kerala government has sanctioned exemptions for royalty on aggregates specifically required for these highway constructions. Notably, these materials must be used exclusively for the designated projects, ensuring accountability and project-specific resource allocation.
Certification and Implementation
To enforce these exemptions, a joint team comprising District Geologists and Engineers appointed by NHAI will certify the quantity of royalty-free products utilized. The GST revenue received by the state government from these projects will be reinvested as grants to NHAI, facilitating further progress and development.
Conclusion
This decision marks a strategic effort by the Kerala government to streamline infrastructure funding and accelerate project timelines. By exempting GST and royalty, the state aims to enhance the efficiency of these crucial highway developments, ultimately benefiting local communities and commuters.
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Hashtags:#KeralaInfrastructure #ErnakulamBypass #KollamChengottaRoad #NHProjects #GSTExemption #RoyaltyWaiver
