2023 (10) TMI 1291 - HC - GST

Levy of 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 while preparing Bill of Quantities (BOQ) for inviting the bids. HELD THAT - Considering the submissions of the parties this writ petition is disposed of by giving liberty to the petitioner to file appropriate representation in the aforesaid regard as referred in preceding paragraph of this order, before the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks from date. On receipt of such representation the Additional Chief Secretary, Finance Department shall take a final decision within four months from the date of receipt of such representation after consulting with all other relevant departments concerned. Petition disposed off.

Summary

Issues involved:
The issues involved in the judgment are the liability of additional tax burden on Government contracts due to GST implementation and the need to update the Schedule of Rates (SOR) to incorporate applicable GST.

Liability of Additional Tax Burden on Government Contracts:
The writ petition was filed to seek direction for the authority concerned to bear the additional tax liability for executing Government contracts awarded in both pre-GST and post-GST regimes without updating the Schedule of Rates (SOR) to include applicable GST in the Bill of Quantities (BOQ) for inviting bids. The petitioner also requested relief to neutralize the impact of unforeseen additional tax burden on ongoing contracts awarded before the introduction of GST on July 1, 2017, and to update the State SOR to include applicable GST instead of the inapplicable West Bengal VAT going forward.

Decision and Directions:
After hearing the submissions of the parties, the writ petition was disposed of with the petitioner being granted liberty to file a representation before the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks. The Additional Chief Secretary was directed to make a final decision within four months of receiving the representation after consulting with all relevant departments. It was emphasized that any coercive action against the petitioner was prohibited until the final decision was made. Failure to file the representation within the stipulated time would render the order ineffective. The Additional Chief Secretary was instructed to make a reasoned and speaking order considering all relevant judgments of different High Courts that the petitioner intended to rely on.

Conclusion:
The writ petition, numbered WPA 21646 of 2023, was disposed of with the mentioned observations and directions for the parties involved in the matter.