SPK And Co. Vs Additional Commissioner (Madras High Court)
The writ petition before the Madras High Court challenged an order dated 26.04.2024 passed by the third respondent, by which the petitioner’s request for remittance of the differential Goods and Services Tax (GST) amount was rejected. The petitioner sought a direction to reimburse the additional GST arising from an increase in the tax rate from 12% to 18%, by considering the petitioner’s representation dated 22.03.2024.
The petitioner’s case was that, for the projects executed by it, GST was initially payable at the rate of 12%. The GST rate was subsequently increased to 18% with effect from 18.07.2022. Although the work was completed on 08.06.2022, the invoice was raised at a later date, admittedly after 18.07.2022. It was also not disputed that payments were made after 18.07.2022. Relying on Section 14(a)(i) of the Central Goods and Services Tax Act, 2017, the petitioner contended that the applicable GST rate would be the rate prevailing on the date of issuance of the invoice or the date of receipt of payment, whichever is earlier, and that such date would be treated as the date of supply. On this basis, the petitioner claimed that the increased GST rate applied and sought reimbursement of the differential tax amount, which was rejected by the third respondent.
