Ahmedabad: The indefinite strike of the Gujarat Contractors Association (GCA), a body of more than 5000 contractors associated with government, since July 16 has been temporarily put on hold from today till August 5 in the wake of the devastating floods in the state and assurance from the state government.

GCA Chairman Arvind Patel informed today.

He said that a meeting of the representatives of the body was held with Deputy CM Nitin Patel and Secretary of housing of road department S B Vasava in Gandhinagar yesterday in which they agreed to put forth the demand of the association to reduce the existing 18% GST on public works in GST council on August 5. We were assured that even otherwise the state government would also compensate the tax burden in some other way. The Dy CM also showed positive response to other demands including reducing royalty on minerals used for construction works.

‘We also considered the present scenario caused by floods in the state which had damaged the roads, bridges and other public properties at a large scale. Taking a human approach we have decided to suspend temporarily our strike and to take up the reconstruction work in the flood affected areas,’ he said.

Notably, over 500 roads have been damaged owing to flood in North Gujarat and Saurashtra region owing to the rain caused floods.

The works of state government as well as that of CPWD, National Highway Authority of India and Metro Rail projects were badly affected owing to the strike.
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This strike, supported by contractors associations from Maharashtra, Rajashtan and Punjab and Gujarat Railway Contractors Association had rendered an estimated around one lakh labourers associated with public works 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 contractors 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 was already given.

He, however, said that the association would take a fresh call on resumption of strike after August 5.

DeshGujarat