2019 (11) TMI 469 - HC - GST

Valuation - inclusion of component of GST in the invoices - contracts relating to execution of public projects - HELD THAT - It is not in dispute that the liability to pay GST has come into force after 01.07.2017 - In light of statutory liability, the representation of the petitioner to permit him to include the GST component in the invoice that he has raised for the works executed after 01.07.2017 is to be considered appropriately by the respondent - Authority in light of observations made above and in accordance with law. Petition disposed off.

Summary

Issues:
1. Consideration of GST component in invoices for payment by Municipal Authority.

Analysis:
The petitioner, a contractor awarded contracts by respondents, executed works and raised bills with GST component. The Municipal Authority orally directed to exclude GST for bill consideration. Petitioner made representations to include GST in invoices. Municipal Authority stated they would consider invoices if petitioner is liable to pay GST. Section 9 of the Central Goods and Services Tax Act, 2017, imposes the obligation to levy and collect GST on the supplier. However, Section 33 requires tax amount indication on invoices.

The petitioner argued that the contract with the Authority deems contractor rates inclusive of taxes, obliging him to include tax in invoices. The liability to pay GST commenced after 01.07.2017. The petitioner's representation to include GST in post-01.07.2017 invoices should be considered by the Authority in line with statutory obligations. If the petitioner is liable for GST, the representation must be addressed in accordance with the law and disposed of appropriately.

In conclusion, the Court directed the Authority to appropriately consider the petitioner's representation to include GST in invoices for works executed post-01.07.2017, in line with statutory provisions and contractual obligations. The petition was disposed of accordingly.