Kerala will waive its Goods and Service Tax (GST) share and royalty on construction materials for the upcoming National Highway development projects in the State. Chief Minister Pinarayi Vijayan communicated the decision to Union Minister for Road Transport and Highways Nitin Gadkari at a meeting held in New Delhi on Friday.
The State government had earlier requested the Centre to waive the proposed 25% State share of land acquisition cost for two projects – Ernakulam Bypass and Kollam-Shenkottai NH. In its reply, the Centre had sought inter-alia certain exemptions from the State government, including State GST share and royalty for the construction material.
The State has now conveyed its decision to waive the State’s GST share and royalties on the construction materials for these two projects. Along with this, the State government has requested exemption from shouldering the State share of the land acquisition cost of the Outer Ring Road (ORR) project in Thiruvananthapuram.
The State had earlier agreed to share 50% cost of land acquisition for the ORR project including the 100% land acquisition cost of the service road. The State has now informed the Union Ministry that it is ready to waive its GST share and royalty on the construction material for the ORR project. Instead, the Centre should shoulder the full land acquisition cost for the project. Though the Chief Minister was not given any assurance from the Union Minister in the meeting, the State government is hopeful of getting an exemption on land acquisition costs, said sources.
