The Bihar government is implementing a GIS-based cess collection system to cover all construction activities, whether government, commercial, or private, across the state. This innovative approach, led by the state’s labour resources department, is designed to streamline revenue collection while enhancing the welfare of registered building and construction workers.
In the fiscal year 2023-24, Bihar successfully collected ₹694.80 crore through construction cess. For 2024-25, the state aims to double this amount to ₹1,500 crore. To achieve this ambitious target, the GIS-based cess collection system will be initially launched in Patna, Muzaffarpur, and Gaya, with plans to expand it to all districts over time.
State Labour Resources Minister Santosh Kumar Singh highlighted that the system would greatly improve administrative processes and accuracy in revenue collection. By leveraging Geographic Information System (GIS) technology, the state can spatially manage and analyze construction data, ensuring that all cess is accurately assessed and collected.
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The system also allows for real-time monitoring of construction sites, reducing manual errors and ensuring compliance with regulatory standards. For projects with investments up to ₹10 lakh, a 1% cess will be levied. The GIS-based cess collection system will ensure fair contributions from all construction activities, boosting the state’s revenue while supporting the welfare of workers.
The revenue generated through this GIS-based cess collection system will be channelled into various welfare schemes aimed at improving the lives of construction workers. This initiative is part of the government’s broader strategy to use modern technology for better governance and more effective support of its citizens.
Additionally, the Bihar government has increased ex gratia payments for migrant labourers who lose their lives or suffer disabilities due to accidents. These enhancements, combined with the GIS-based cess collection system, reflect the government’s commitment to the welfare of its workforce.
Source: PTI
I am very thankful for obtaining information from your site. Can you please provide any official link or official file/notification for “For projects with investments up to ₹10 lakh, a 1% cess will be levied.”, because I want to know the threshold money for labour cess deduction in Bihar state from official documents please. I will be highly obliged to you sir/mam.
Hi Shivam, As mentioned in the news article, the original source of information was PTI, and the link is – https://www.ptinews.com/story/national/bihar-to-introduce-gis-based-cess-collection-system-on-constructions-to-provide-benefits-to-workers/1773362