The GST department is investigating trade related to soil excavated during development of a construction site. It estimates recovery of over Rs 100 crore of tax from the developers and traders for the transactions of soil.
The GST department has approached developers and sought details of transactions related to the excavated soil. Details of past six years transactions have been sought from the developers.
While developing high rise buildings, the ground is required to be dug up to construct foundation and at least two floors of basement. A huge quantity of soil is excavated from the construction sites and supplied depending upon the demand.
During the investigation, it was found that the developers were claiming it to be a barter, between the excavator and construction site developer. The excavator sold the soil against their services. However, GST officials are not satisfied with the claims and continuing investigation.
The GST department suspects that the soil is sold, but taxes were not paid on it. Meanwhile, the developers are upset over the investigation for the past years. “The investigation for the past years transactions is not fair. Some of our leaders have raised the concerns with the government,” said an officer bearer of CREDAI Gujarat. “We are going to meet GST officials and make representation in this issue. Developers have received the queries from the department,” said a top Surat CREDAI official.
Source: The Times of India
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