2024 (12) TMI 45 - HC - GST

Seeking reimbursement of extra GST amount paid - grievance of the petitioner is that despite the enhancement from 01.01.2022, the respondents are paying the running bills with 12% GST and the petitioner is paying 18% GST - HELD THAT - Respondents No. 2 3 filed a return raising baseless objection regarding maintainability of writ petition, and availability of alternative remedy under the Arbitration Act - Needless to say that no disputed question of facts are involved in this case, therefore, the petitioner cannot be relegated to the Dispute Resolution Form as provided under the agreement. 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 petitioner filed a writ petition seeking reimbursement of extra GST paid at 6% from 01.01.2022 to 30.09.2022. The petitioner, a construction firm, had contracts with a government entity. Despite GST rate increase to 18% from 01.01.2022, the entity paid bills at 12% GST. The entity accepted liability to pay the additional 6% but awaited state government approval. The court directed the entity to pay the GST difference to the petitioner within three months, with interest at 6% per annum if delayed.