Builders continue to face teething hurdles in the new GST regime and a representation is likely to be sent to the GST Council to seek for greater clarity. “We welcome the new tax system. We have been experiencing some teething problems in the transition period.

Amongst various issues that are disturbing the industry, the compliance for submitting GST returns is one,” Builders Association of India (East) chairman Subrata Das said on Friday.

He said construction companies and contractors have several site offices and they need to transfer their machineries from one site to other, and according to the goods & service  law, transfer of machinery from one state to another will attract Integrated Goods and Service Tax (IGST) and it will impact the cash flow.

“It is expected we will submit a comprehensive representation to the GST Council and state finance ministers by the end of next week after compiling the feedbacks from all the centres,” Das said.

The association, which has 150 centres across the country, has been organising GST workshop in different parts of India.

Former president of the Builders Association of India, S K Basu said that the mechanism whereby reverse charges were being levied for goods and services received from unregistered dealers was affecting the cash flow of builders and contractors.