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2023 (10) TMI 1043 - HC - GSTSeeking direction on appropriate respondent to remit the amount of GST on works contract services provided on or before and after 1st July, 2017 i.e. before or after the introduction of GST Act - HELD THAT - It appears the respondent authorities concerned have to bear the additional tax liability for execution of subsisting Government contract either awarded to the petitioner during pre-GST regime or in post-GST regime without updating the Schedule of Rates (SOR) incorporating the applicable GST while preparing Bill for payment. This writ petition is disposed of by giving liberty to the petitioner to file appropriate representations stating all the facts and provision as referred in preceding paragraph of this judgment, before the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks from date.
Issues involved:
The issues involved in this case include the petitioner's request for direction to remit the amount of GST on works contract services provided before and after the introduction of the GST Act, the contention regarding liability to pay tax and interest under Section 73 of the GST Act, and the need to address the additional tax liability for government contracts awarded before and after the GST regime. Summary: The petitioner filed a writ petition u/s Article 226 of the Constitution of India seeking direction for the remittance of GST on works contract services provided pre and post the introduction of the GST Act. The petitioner, a registered business dealing with works contracts, received work orders during the pre-GST and post-GST regime. Despite notification clarifying the applicability of GST rates on post-GST contracts, the Government Contractee failed to pay the GST tax and interest demanded by the authorities. The respondent issued a notice under Section 73 of the GST Act, requiring the petitioner to pay tax and interest. The petitioner argued that the Government Contractee is liable to pay the tax and interest as per relevant notifications and statutes. The petitioner referred to various court decisions to support their claim. On the other hand, the respondent contended that the petitioner is liable to pay the tax and interest under Section 73 of the GST Act. The court noted that the respondent authorities must bear the additional tax liability for government contracts awarded before and after the GST regime without updating the Schedule of Rates to incorporate applicable GST. The court disposed of the writ petition, allowing the petitioner to file representations before the Additional Chief Secretary, Finance Department, Government of West Bengal. The Additional Chief Secretary was directed to make a decision within four months after consulting relevant departments. No coercive action was to be taken against the petitioner during this period. The court emphasized that the decision should be reasoned and consider all relevant judgments. In conclusion, the writ petition was disposed of with no order as to costs, and urgent copies of the judgment were to be provided to the respective advocates. All parties were instructed to act based on the official copy of the order from the court's website.
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