2024 (9) TMI 1642 - HC - GST

Direction to respondents to reimburse the extra GST amount paid along with interest - grievance of the petitioner is that despite the aforesaid enhancement from 01.01.2022, the respondents are paying the running bills with 12% GST and the petitioner is paying 18% GST - HELD THAT - Respondent No.4 which is a State GST Department, according to which also the rate of GST has been enhanced from 12% to 18% and same is liable to be paid by respondent No.2 which is a Government Entity. The respondent No.2 is directed to pay the difference of GST amount to the petitioner @ 6% from 01.01.2022 to 30.09.2022 with a period of three months from the date of receipt of certified copy of this order, failing which the petitioner shall be entitled for interest @ 6% per annum from the date of entitlement. Petition disposed off.

Summary

The High Court of Madhya Pradesh directed respondent No.2 to reimburse the petitioner for the extra GST amount paid at 6% from 01.01.2022 to 30.09.2022 along with interest. The petitioner, a construction company, had been paying GST at 18% while the respondent paid at 12%. Respondent No.2 accepted the liability to pay the additional 6% but claimed lack of approval from the State Government. The Court ruled in favor of the petitioner, ordering respondent No.2 to make the payment within three months, failing which interest at 6% per annum would be applicable.