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GST - Highlights / Catch Notes

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HC determined that the contractor was liable to pay GST at 18% ...


Contractor Wins 6% GST Reimbursement Claim as Contract Mandates Full Tax Recovery from Principal Party

February 25, 2025

Case Laws     GST     HC

HC determined that the contractor was liable to pay GST at 18% on taxable turnover from works contract, while respondent had only reimbursed 12%. Based on contractual obligations requiring full GST reimbursement, which remained uncontested, respondent must pay the differential 6% GST amount. Court directed respondent to reimburse contractor for the difference between GST paid (18%) and amount already reimbursed (12%). Additionally, any interest charges levied by GST authorities for late payment must also be reimbursed by respondent. Writ petition disposed with directions for differential GST reimbursement.

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