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TMI Blog2018 (12) TMI 1953X X X X Extracts X X X X X X X X Extracts X X X X ..... e in tax regime from Value Added Tax (VAT) to Goods and Service Tax (GST) with effect from 01.07.2017 and has also prayed to quash Clause 1(iii) of the Finance Department Memorandum dated 07.12.2017. Batch of writ petitions are being filed on this issue. The main issue involved in such matters is that the difficulty faced by the contractors due to change in the regime regarding works contract under GST. The grievance of the petitioner is that in view of the introduction of the GST, petitioner is required to pay tax which was not envisaged while entering into the agreement. Mr. M.S. Sahoo, learned Addl. Government Advocate submits that the Government has now come out with a revised guidelines in this respect in supersession of the guidelin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and are taxable @18%, 12% or 5% depending on the nature of works contract. In order to comply the provisions of GST relating tow works contract the State Government have revised the Schedule of Rates - 2014 (SoR-2014) vide Works Department OM No. 13827/WD dated 16.09.2017 w.e.f. 01.07.2017. While the item rates in the SOR-2014 were inclusive of all taxes i.e. Excise Duty, VAT, Entry Tax, Service Tax etc., the same has been excluded in the Revised SoR-2014. Therefore, while preparing estimates for a work after 01.07.2017, the GST exclusive work value is to be arrived at as per the revised SoR-2014 and then GST will be added at the appropriate rate. 2. In GST regime, the works contractor is required to raise Tax Invoice clearly showing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s contractor will determine GST inclusive work value for the Balance Work for which agreement executed on the basis of SoR- 2014. (vi) A supplementary agreement shall be signed with the works contractor for the revised GSTinclusive work value for the Balance Work as determined above. (vii) In case the revised GST-inclusive work value for the Balance Work is more than the original agreement work value for the Balance Work, the works contractor is to be reimbursed for the excess amount. (viii) In case the revised GST-inclusive work value for the Balance Work is less than the original agreement work value for the Balance Work, the payment to the works contractor is to be reduced accordingly. In case excess payment has already been made t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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