Pune: The Pune Municipal Corporation (PMC) finally started reflecting the Goods and Services Tax (GST) regime in its schedule of rates used for calculating the estimated cost for floating tenders for carrying out development projects.
The Central government replaced the old tax regime with GST from July 1 and most of the taxes like sales tax, excise tax, service tax to name a few were scrapped to make the tax system simpler.
After the GST came into existence from July 1, the PMC had to scrap its old schedule of rates used for calculating the estimated cost of the development projects and services it hires from private agencies based on which the tenders are floated by the various departments of the PMC.
Since the rates of entire goods and service industry have been changed post GST implementation, the PMC had to recall some tenders to adjust the new rates in the tender process.
While rates of some products or raw material reduced, at the same time, rate of some product increased due to GST.
Interestingly, the introduction of GST resulted in scrapping of four tenders floated by the PMC to carry out the multi-crore 24X7 water supply project and the PMC has to float the tenders afresh. On similar guidelines, the PMC decided to scrap the other tenders also to reflect the changes in the scheduled rates.
The tender process
† To adjust the GST rates in the tender process, the PMC decided that tenders approved before August 20 and for which private contractors have been not yet issued the work order will not be processed.
† However, the tenders passed before July 1 and where the work order has been issued already to private contractors will not be recalled.