2023 (10) TMI 988 - HC - GST

Additional tax liability for execution of subsisting Government contracts either awarded in the pre-GST regime or in the post GST regime without updating the Schedule of Rates (SOR) incorporating the applicable GST - Seeking neutralization of the impact of unforeseen additional tax burden - HELD THAT - The writ petition is disposed of by giving liberty to the petitioner to file appropriate representation, before the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks from date. Petition disposed off.

Summary

Issues involved: Relief sought for additional tax liability in government contracts u/s GST regime and updating Schedule of Rates (SOR).

Summary:
The writ petition was filed seeking relief for the additional tax liability in government contracts executed under the GST regime without updating the Schedule of Rates (SOR) to incorporate the applicable GST. The petitioner also requested direction to neutralize the impact of unforeseen tax burden on ongoing contracts awarded before the introduction of GST. The court disposed of the petition by granting the petitioner liberty to file a representation before the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks. The Additional Chief Secretary is directed to make a final decision within four months after consulting with relevant departments and providing an opportunity of hearing to the petitioner. No coercive action shall be taken against the petitioner until a final decision is made. Failure to file the representation within the specified time will render the order ineffective. The Additional Chief Secretary is instructed to make a reasoned and speaking order considering all relevant judgments of different High Courts that the petitioner intends to rely on. The writ petition is disposed of with these observations and directions.