Metro bidders confused with GST, hesitant to quote prices

Bidders, who evinced interest in constructing a 2.85 km elevated viaduct for standard gauge twin track Metro rail including 400 m depot approach and three elevated stations- Gowri Ashram, Tiruvottiyur and Wimco Nagar on the 9 km Washermanpet - Wimco Nagar stretch, have raised doubts about the tax reimbursement. 

Understandably, bidders were even unsure of quoting the prices for the tender, which closes on July 10, over a week after the new GST regime comes into effect. 

One of the first queries raised by bidders, who had sought clarity in quoting prices, was replacing the provisions in the bidding document to GST reimbursement on production of documentary evidence as the quoted price would include excise, customs, VAT and service tax, the various taxes in vogue now. 

To another query on duties and taxes to be included in the price, CMRL has conveniently advised contractors to quote price exclusive of TN VAT, excise, customs and service tax. 

Though it might be a tad too early to work out the number of tenders or rather projects that could be delayed due to transition to GST regime in the long run, none could dispute the immediate impact it has on the tendering process. 

Even senior CMRL officers requesting anonymity admitted to lack of clarity on GST in the state administration and said that they would go by the existing tax regime and make necessary amendments to the tax structure in future in a way it does not affect either CMRL or contractors.

A CMRL source told DTNext that it would be at least a few months before bidding processes get normalised and contractors participate in the bids without inhibition and delay.