GCC starts discussions to exempt Councillors’ Ward Ddevelopment Fund from GST
The Greater Chennai Corporation (GCC) has started discussions pertaining to the exemption for the Councillors’ Ward Development Fund from the Goods and Services Tax during the implementation of civic infrastructure projects in the city.
Councillors have complained that they are not able to implement all the projects demanded by residents as 18% of the funds allocated under the fund went towards GST while implementing civic infrastructure projects. GCC councillors are empowered to implement civic projects worth Rs.50 lakh every year under the Ward Development Scheme. Once a decision in this regard is taken, the 200 wards in the city are expected to get 400 to 500 additional civic infrastructure projects implemented in one year.
Several residents depend on the Councillors’ Ward Development Funds to implement small projects such as building classrooms in schools, narrow cement concrete roads, community halls, libraries, and public toilets.
Fatima Muzaffar, GCC councillor from Egmore, said the councillors demanded exemption from GST because they implemented these projects for the people without any commercial purpose. “Councillors are not able to use the full amount of Rs.50 lakh every year towards construction of civic infrastructure for the residents. Schemes meant to benefit residents should not be taxed,” she added.
