Nimai Kar Vs State of Tripura (Tripura High Court)
In Nimai Kar vs State of Tripura, the Tripura High Court adjudicated a dispute concerning reimbursement of GST paid under a works contract executed after the introduction of the GST regime.
The petitioner participated in a tender issued by the Public Works Department (PWD) in March 2017 and was declared successful. While quoting rates, the petitioner considered a VAT liability of 6% under the Tripura Value Added Tax Act, 2004. However, with the repeal of the VAT regime and the introduction of the CGST and TSGST Acts with effect from 01.07.2017, the applicable tax rate increased to 12%.
Before issuance of the work order and execution of the agreement, the petitioner informed the authorities that he would not bear any increase in tax liability. Though this request was noted in departmental communications and mentioned in the work order, it was not incorporated in the final agreement dated 24.11.2017. The agreement contained Clause 42, stating that the quoted rate would be inclusive of all taxes, and Clause 42.1, providing that taxes paid by the contractor would be reimbursed on proof of payment. However, the agreement did not include the referenced Schedule A.
