This is a disputed factual aspect which can only be resolved after a counter affidavit is filed on behalf of the respondents clearly stating the rate on which the tax was included while submitting the tender by the petitioner.
Work Contract--Rate of GST – The petitioner a contractor and was awarded a work contract on 14.10.2017. On the said work contract, he paid GST @ 12% as per the notification dated 22.08.2017. The respondents by the impugned letters are demanding GST @ 18% and thus have raised a demand of extra 6% to the tune of Rs. 1,26,37,192/-. The counsel for the petitioner submitted that liability to pay taxes on the above work contract arises either at the time of supply of services or on the date of the receipt of the payment, whichever is earlier. In this case, the said date happens to be a date subsequent to the notification dated 22.08.2017 by which the GST was reduced from 18% to 12% and therefore, the petitioner is only liable for payment of 12% GST. The respondent counsel submitted that under the contract, the petitioner is liable to pay the whole amount as per the contract including GST @ 18%. The court asked the respondent to file reply within a month.
Held that:- The Hon’ble High Court listed the matter on 9th March 2021. Further directed that until further orders no coercive steps shall be taken against the petitioner to realise any additional tax in connection with the disputed contract.
This is a disputed factual aspect which can only be resolved after a counter affidavit is filed on behalf of the respondents clearly stating the rate on which the tax was included while submitting the tender by the petitioner.
Work Contract--Rate of GST – The petitioner a contractor and was awarded a work contract on 14.10.2017. On the said work contract, he paid GST @ 12% as per the notification dated 22.08.2017. The respondents by the impugned letters are demanding GST @ 18% and thus have raised a demand of extra 6% to the tune of Rs. 1,26,37,192/-. The counsel for the petitioner submitted that liability to pay taxes on the above work contract arises either at the time of supply of services or on the date of the receipt of the payment, whichever is earlier. In this case, the said date happens to be a date subsequent to the notification dated 22.08.2017 by which the GST was reduced from 18% to 12% and therefore, the petitioner is only liable for payment of 12% GST. The respondent counsel submitted that under the contract, the petitioner is liable to pay the whole amount as per the contract including GST @ 18%. The court asked the respondent to file reply within a month.
Held that:- The Hon’ble High Court listed the matter on 9th March 2021. Further directed that until further orders no coercive steps shall be taken against the petitioner to realise any additional tax in connection with the disputed contract.