Union Minister Nitin Gadkari has issued a stern warning to road construction companies, stating that the Goods and Services Tax (GST) trail will expose multiple layers of subcontracting prevalent in the sector.

Crackdown on Subcontracting Practices

Gadkari cautioned road builders that authorities can now track the chain of subcontractors through GST records, making it difficult to conceal how work is passed down through multiple layers. The practice of subcontracting projects through several tiers has long been a concern in India's road construction industry.

Impact on Road Construction Sector

The warning signals increased scrutiny of how highway and infrastructure contracts are executed on the ground. By following the GST trail, officials can identify each entity involved in a project, bringing greater transparency and accountability to the sector.

The minister's remarks underscore the government's push to ensure that road projects are executed by capable contractors rather than being diluted through repeated subcontracting, which can affect quality and timelines.