Ahmadabad: Over 5000 contractors involved in government works of Gujarat would remain on indefinite strike started from today for their demands including adjusting the increased burden owing to GST and the works of state government as well as that of CPWD, National Highway Authority of India and Metro Rail projects would be affected, Gujarat Contractors Association (GCA) said.

Addressing a press conference here today GCA chairman Arvindbhai Patel said that they had met the CM, Dy CM and Mines and Mineral Minister and GST commissioner and written to all the district collectors but despite assurances nothing has been done.

We have started our strike from last midnight as per our earlier ultimatum that the contractors would stop all the government works and surveys including that of roads and buildings and local bodies if the government did not agree to bear the increased burden owing to GST and decrease the royalty on materials used for the purpose.

This strike, supported by contractors associations from Maharashtra, Rajashtan and Punjab and Gujarat Railway Contractors Association has rendered around one lakh labourers associated with government jobs across the state jobless, he said adding that his association was not against GST as such but against certain provisions in it.

With the implementation of GST from July 1, 18% tax on works contract being . The new tax structure has caused additional burden of 8% to 12 % on existing Government Contractor and construction work which was sort of unbearable, Patel said adding that a memorandum to the government to adjust the increased burden owing to GST in the bill and also to reduce the royalty which has been increased from 100% to 250% and other issues related to contractors has been given.

DeshGujarat