GST liability is not applicable before its enactment

[CA Bimal Jain]

The Hon’ble Patna High Court in D.B.S. CONSTRUCTION PVT. LTD. VERSUS STATE OF BIHAR AND OTHER - 2024 (9) TMI 389 - PATNA HIGH COURT, held that if the Assessee makes any representation for refund of GST deducted, Authorities were to be directed to dispose of same strictly in accordance with law as expeditiously as possible preferably within a period of eight weeks from date of said representation and disposed of the writ petition.

Facts:

M/s. D.B.S. Construction Private Limited (“the Petitioner”), grievances with regard to the the payment of the admitted dues were redressed. However, the Authorities (“the Respondent”) had deducted GST at the rate of 18% for the contract which was entrusted to them in the year 2009 and completed before the year 2015.

At that time, Value Added Tax (“VAT”) was prevalent, not GST, which has come into effect in 2018. Despite this, the Authorities deducted GST at the rate of 18% from recent payments related to the contract.

The Petitioner contended that this GST deduction was incorrect.

Hence, aggrieved by the circumstances, the Petitioner filed the present writ petition seeking to withdraw the petition to pursue the Respondents to refund the GST erroneously deducted.

Issue:

Whether the GST liability applicable before its enactment?

Held:

The Hon’ble Patna High Court in D.B.S. CONSTRUCTION PVT. LTD. VERSUS STATE OF BIHAR AND OTHER - 2024 (9) TMI 389 - PATNA HIGH COURT held as under:

• Held that, the Petitioner was permitted to withdraw the writ petition and  pursue the GST refund claim directly with the Respondents. Thereafter, the Court directed that any representation for the refund be processed strictly in accordance with law and as expeditiously as possible, preferably within a period of eight weeks from the date of the representation. Hence, the writ petition is disposed of.

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