CNCCI cautions against illegal taxes on construction materials in Nagaland

DIMAPUR — The Confederation of Nagaland Chamber of Commerce and Industry (CNCCI) has urged government departments, agencies, and urban local bodies (ULBs) to refrain from imposing levies or taxes on construction materials outside the Goods and Services Tax (GST) framework.

In a press note issued on Tuesday, CNCCI clarified that river sand, stone chips, and bricks are covered under GST, with applicable rates of 5% for river/natural sand and stone chips and 12% for red bricks / building bricks.

“Accordingly, any additional levy, cess, or taxation imposed on these items outside the GST framework is in direct contravention of the provisions of the GST Act,” it stated.

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The CNCCI cited a state government order dated May 19, 2022, which prohibits unauthorised collection of money from vehicles at check gates and other locations in Nagaland. The order, it pointed out, empowers deputy commissioners to conduct inspections and mandates prosecution under Sections 188 and 384 of the IPC as well as disciplinary action against government servants operating illegal check gates.

Calling on district administrations to dismantle any unauthorised collection points, CNCCI warned that non-compliance would compel it to “lodge complaints against the district administration and take legal recourse as per the provisions of the government order.”

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The CNCCI also reminded the Police Headquarters (PHQ) to operationalise a 24x7 control room, with phone and WhatsApp facilities, to allow citizens to report instances of extortion or illegal collection anonymously, as directed in the 2022 government order. It urged the PHQ to widely circulate the contact details through traditional and social media.

Directing its district chambers to remain vigilant, CNCCI said it “will not hesitate to file complaints against government employees, departments, unions/associations, and individuals indulging in extortion and unlawful collection.”