CHENNAI: The Electronics Corporation of Tamil Nadu (ELCOT) is approaching the state government to seek the Centre’s intervention in providing Goods and Service Tax exemption for the contractors and sub-contractors carrying out infrastructure works in the Special Economic Zone at Sholinganallur.
It is learnt that the additional infrastructure works at the ELCOT’S Special Economic Zone have been hit as the indigenous material could not be purchased due to the failure to get GST exemption by PSK Engineering and Construction, which is carrying out the infrastructure works.
A top Information Technology department official told Express, “Basically there is no GST for the SEZ. However, construction activities would entail state and Central GST. This has resulted in some delay.”
SEZ sources told Express that top Tamil Nadu government officials were trying to resolve the issue. ELCOT is pushing for an amendment to the GST Act for the contractor of SEZ and sub-contractor to avail GST exemption.
Sources indicated that ELCOT has requested the Union Ministry of Commerce which has, in turn, forwarded the request to the Revenue department. Through the Information Technology department, ELCOT is planning to approach the Finance Ministry so that the pending work gets completed soon. A top
IT official told Express that he has yet to get the request from ELCOT.
It is also learnt that officials have been asked to check with the contractors whether they can pay the GST and later claim the refund.
Meanwhile, efforts are also on to reduce traffic congestion at the Sholinganallur-Medavakkam Road. Sources in the Highways department said the existing two-lane road is to be widened for a stretch of 2.5 km upto the Medavakkam Junction and this could require land acquisition.
Officials are also trying to help provide the SEZ with access to rear-side road which could be resolved through exchange of land with Proteck Circuits. The issue is still pending.