What are the implications of increased GST on Smart Cities?
SMART CITIES

What are the implications of increased GST on Smart Cities?

GST is now the talk of the smart town. In the initial five years of the Smart Cities Mission, 12 per cent GST was applicable on certain construction projects, especially government buildings. However, for projects such as solid waste management, for instance, GST was not applicable. But after a recent reviewby the GST Council, the tax has witnessed an increase from 12 per cent to 18 per cent.

What happens when smart cities are considered companies and not municipal corporations or government entities? And how does the GST of 18 per cent impact suppliers and service providers who are providing support to these cities?
Trimbak Dhengale Patil, CEO, Solapur Smart City, says “It would be beneficial if GST is not applicable to projects under the Smart Cities Mission so that the tax amount can be allocated to its potential. Currently, as we pay the Government back the moneyit has provided us, the amount is just going around in circles. Additionally, instead of questioning if it should go from 12 per cent to 18 per cent, I believe it should just be zero.”

Meanwhile, Sandeep Malvi, CEO, Thane Smart City, shares that this increase will hamper the project cost as all the estimates have been drawn considering the 12 per cent GST. “However, as it is a government decision, we have to follow the rules.”

To read the full article, CLICK HERE.

GST is now the talk of the smart town. In the initial five years of the Smart Cities Mission, 12 per cent GST was applicable on certain construction projects, especially government buildings. However, for projects such as solid waste management, for instance, GST was not applicable. But after a recent reviewby the GST Council, the tax has witnessed an increase from 12 per cent to 18 per cent. What happens when smart cities are considered companies and not municipal corporations or government entities? And how does the GST of 18 per cent impact suppliers and service providers who are providing support to these cities? Trimbak Dhengale Patil, CEO, Solapur Smart City, says “It would be beneficial if GST is not applicable to projects under the Smart Cities Mission so that the tax amount can be allocated to its potential. Currently, as we pay the Government back the moneyit has provided us, the amount is just going around in circles. Additionally, instead of questioning if it should go from 12 per cent to 18 per cent, I believe it should just be zero.” Meanwhile, Sandeep Malvi, CEO, Thane Smart City, shares that this increase will hamper the project cost as all the estimates have been drawn considering the 12 per cent GST. “However, as it is a government decision, we have to follow the rules.”To read the full article, CLICK HERE.

Next Story
Infrastructure Transport

Chennai Metro Phase II: Tunnelling to Begin at Kolathur

Chennai Metro Rail Limited (CMRL) is set to begin tunnelling work for Phase II between Kolathur and Villivakkam within the next two weeks, marking a significant milestone in the city's ?632 billion ($7.6 billion) metro expansion. Phase II comprises three corridors: Madhavaram to SIPCOT (Corridor 3), Light House to Poonamallee (Corridor 4), and Madhavaram to Sholinganallur (Corridor 5). While substantial progress has been made in Corridors 3 and 4, the underground stretch of Corridor 5 has been delayed by over a year. CMRL officials have confirmed that tunnelling will begin this month at Kola..

Next Story
Infrastructure Urban

J&K Faces $100M Waste Management Fund Shortfall

Jammu and Kashmir has faced a significant shortfall in waste management funds under the Swachh Bharat Mission, with only Rs 6.42 billion ($100 million) disbursed against an allocation of Rs 14.81 billion ($180 million) over the past five years. This funding gap, revealed in Rajya Sabha by the Ministry of Housing and Urban Affairs on February 10, 2025, has raised concerns over waste collection, sorting, and disposal infrastructure in the region. As per official data, Jammu and Kashmir received just Rs 1.40 billion ($17 million) under the Swachh Bharat Mission-Urban (SBM-U), despite an allocati..

Next Story
Infrastructure Urban

India’s First Indigenous Biomedical Waste Plant Opens

Union Minister Dr. Jitendra Singh inaugurated India’s first indigenous Automated Biomedical Waste Treatment Plant, ‘S?janam,’ at AIIMS New Delhi. Developed by CSIR-NIIST, the plant offers a sustainable alternative to incineration by disinfecting pathogenic waste without harmful emissions. With an initial capacity to handle 400 kg of biomedical waste per day, ‘S?janam’ neutralizes odors and treats infectious materials like blood, urine, and laboratory disposables. The system, currently undergoing validation and regulatory approval, could revolutionize biomedical waste management in I..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?