State of Karnataka Vs Unique Constructions (Karnataka High Court)
Material Facts
The appeal challenged the order dated 25.07.2024 passed by the learned Single Judge in WP No.27637/2023. The writ petitioners, who were registered under the Karnataka Value Added Tax Act, 2003 and later obtained GST registration after the introduction of GST on 01.07.2017, sought directions for reimbursement of differential GST paid on works contracts and for issuance of a policy regarding GST on works contracts executed under the VAT regime. They stated that they had entered into works contracts before and after 01.07.2017 and classified them into three categories based on the timing of the tenders and agreements. The agreements produced provided that the quoted rates were inclusive of sales and other taxes. The writ petitioners claimed that the pre-GST Schedule of Rates did not include GST and sought reimbursement of GST paid at 12% and 18%, asserting that their employers were liable to reimburse the incremental tax over the earlier VAT liability.
Procedural History
The learned Single Judge allowed the writ petition by following the earlier decision in Sri Chandrashekaraiah and others v. State of Karnataka and directed reimbursement of GST amounts indicated in the petitioners’ representations within six weeks. The State preferred the present appeal against that order.
