Parl's Standing Committee on Finance calls for GST relief on MPLAD fund
The Members of Parliament Local Area Development Scheme (MPLADS) is “heavily burdened” under GST and the Ministry of Finance should consider waiving it to make the scheme more effective, the Standing Committee on Finance has said in its report.
A GST of up to 18 per cent is charged on the work done under the MPLAD scheme.
The 31-member panel, led by BJP MP Bhartruhari Mahtab, noted in its report tabled Wednesday that the imposition of GST on these funds reduces their effectiveness.
The MPLADS is a central government scheme that enables MPs to recommend development projects in their constituencies to address local needs. Under this scheme, each MP is allocated Rs 5 crore per year, which can be used for infrastructure development, including roads, schools, health facilities, and community assets.
“The committee observed that members are facing several issues in the e-Sakshi portal and it needs improvement. The committee also observed that this scheme is heavily burdened under GST. Considering the constant hike in inflation and impact of GST on MPLAD fund, the Committee recommended the ministry to prepare a proposal to take up the matter with Ministry of Finance for waiving off GST from MPLADS to enhance the effectiveness of the scheme,” the report on Demands for Grants (2025-26) said.
