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2018 (3) TMI 968 - HC - GSTConsideration of representations submitted by the petitioner - Levy of GST - Works Contract, on which VAT was imposed previously - the petitioner/association made representations on 05.07.2017, 10.07.2017, 11.07.2017 and 11.09.2017 to the respondents stating that the contract works for which the agreements were executed prior to 01.07.2017 GST cannot be imposed and 2% VAT alone is applicable. Held that - since the petitioner s representations are pending, it is appropriate for the respondent to respond to the same by giving them a reply. The appropriate person who would be in a position to give reply is that the Commissioner of Commercial Taxes shall give a reply. Because all other authorities are the department of Highways and National Highways etc., who would not be in a position to specifically address the issue pointed out by the petitioner. There will be a direction to the Commissioner of Commercial Taxes to consider the representation given by the petitioner/ association and pass orders on merits and in accordance with law, within a period of four weeks from the date of receipt of a copy of this order.
Issues: Interpretation of Works Contract Tax under TNVAT Act and Central Goods and Services Tax Act, 2017; Representation by association regarding imposition of GST on works contracts executed before 01.07.2017.
Analysis: The petitioner, an association registered under the Tamil Nadu Societies Act, raised concerns post the enactment of the Central Goods and Services Tax Act, 2017, regarding the imposition of 6% tax by the Central Government on works contracts. The association contended that the State Government could also levy tax, making the total tax liability 12%. Representations were made to the respondents stating that contracts executed pre-GST implementation should only be subject to 2% VAT. The association also argued that any additional tax should be remitted by the respondents if imposed. The petitioner was directed to include the Secretary to Government, Commercial Taxes Department, and the Commissioner of Commercial Taxes in the case for a comprehensive review. The Government Advocate informed the court about G.O. Ms.No.264, which reduced the GST on works contracts for Government work from 18% to 12% to balance taxes pre and post GST regime. The court directed the Commissioner of Commercial Taxes to consider the association's representation and issue orders within four weeks. The petitioner was granted a personal hearing, and copies of the representation along with the court order were to be submitted to the Commissioner for compliance. The judgment emphasized the need for a prompt response to the petitioner's concerns and a fair assessment of the tax implications on works contracts under both the TNVAT Act and the CGST Act, 2017.
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