Excess GST Paid at 18% Instead of 12%: Allahabad HC allows Fresh Representation for Refund Claim [Read Order]
After receiving the representation, the competent authority was directed to consider and decide the claim within two months, ensuring due notice and opportunity of hearing to the petitioners.
Refund - claim - Taxscan
Refund - claim - Taxscan
The Allahabad High court has directed the assessee to file a fresh representation regarding the GST ( Goods and Services ) refund of the excess GST paid before the concerned authorities without going into the merits of the case.
The petitioners, M/s Kala Construction and Another, contended that they had paid Goods and Services Tax (GST) at the rate of 18% on their works contract, though they were liable to pay only 12%. This excess payment, they argued, had resulted in an additional outflow of ₹8,96,409/-.
In support, they relied upon a letter dated 7 October 2024 issued by the Executive Officer of Nagar Panchayat, Badagaon, Jhansi, to the Principal Secretary, Urban Development Department, U.P. Government, requesting approval for refund of the excess GST paid.
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However, despite this official communication, no action had been taken by the concerned authority, leading the petitioners to approach the High Court.
The Counsel for the petitioners argued that the matter had been unnecessarily delayed by the State authorities despite clear acknowledgment of the excess payment. They sought directions to the authorities for immediate refund of the excess GST amount.
The Standing Counsel appearing for the State respondents also submitted that rather than keeping the writ petition pending, it would be appropriate to direct the petitioners to make a fresh representation before the competent authority, which could then decide the matter in accordance with law.
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A Division Bench comprising Justice Saral Srivastava and Justice Amitabh Kumar Rai refrained from entering into the merits of whether GST was wrongly charged at 18% instead of 12%.
However, recognizing the petitioners’ grievance, the Bench permitted them to file a fresh representation along with a certified copy of the Court’s order before the Principal Secretary, Urban Development Department (Respondent No. 1), within one month.
It further directed that upon receiving such representation, the competent authority must consider and decide the claim within two months, ensuring due notice and opportunity of hearing to the petitioners.
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