Facing steep increase in the tax rate after the rollout of Goods and Services Tax (GST), the construction industry in Gujarat has shut down ongoing projects worth about ₹50,000 crore.

The apex body of contractors in the state, Gujarat Contractors’ Association, has gone an indefinite strike from the midnight of July 15 opposing the 18 per cent tax slab imposed on construction industry. It has rendered over one lakh construction workers jobless, said Arvind Patel, chairman of Gujarat Contractors’ Association.

As many as 5,000 contractors across the state have joined the strike, which has got support from Gujarat Railway Contractors Association – Ahmedabad, Maharashtra State Contractors Association, Maharashtra, All Rajasthan Contrctors Association, and Panjab Contrctors Association.

“We had approached Chief Minister Vijay Rupani and senior ministers and officials, who had assured us of favourable action, but till now there has been no decision on our demands,” Patel said.

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