In an order considering a petition seeking GST liability of the contractor to pay additional GST after the rate changes, the Chhattisgarh High Court has directed the department to consider the representation by the petitioner-assessee.
As perthe Work Order dated 25.4.2022 that was issued to the Petitioner, CG Associates, the GST payable at that point of time was 12 percent, whereas subsequently from 18.7.2022 the rate has been enhanced from 12 percent to 18 percent and in the process the Petitioner has incurred certain additional liability towards the payment of GST.
The Petitioner contended that the said Order dated 30.9.2022 also has a Clause to the effect that, in the event if there is a reduction in the tax rate, the Contractor would also have to reimburse the said amount to the State Government.
It was, therefore, contended that there is a increase in the tax liability, it would be the same principle that would be applicable upon the Respondents also and they are duty-bound to reimburse the Petitioner to the extent of the additional tax liability suffered by the Petitioner in the course of the enhancement of the rate of GST.”
The GST department submitted that the representation would have to be decided strictly in accordance with the provisions of Law and the Contract, governing the field.
Justice P. Sam Koshy observed that “Given the said facts, the the present Writ Petition as of now stands disposed of, directing the Respondent Authorities to consider and decide the representation filed by the Petitioner on 6.11.2022, at the earliest, preferably within a period of 90 days. While deciding the representation, the Respondent Authorities shall take into consideration the Order dated 30.9.2022 whereby Clause 2.17.1 stood amended. In addition, the Petitioner would also be at liberty to make a fresh representation along with the supporting documents showing the proof of the additional tax liability incurred by the Petitioner which would facilitate the Respondents in taking a decision. Subject to the representation being decided favourably, the Respondents shall also take steps for reimbursing the amount forthwith.”
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