Case Law Details
Bimal Roy Vs State of West Bengal & Ors. (Calcutta High Court)
Introduction: The Calcutta High Court recently delivered a significant judgment on the issue of GST (Goods and Services Tax) liability concerning government contracts. In the case of Bimal Roy Vs State of West Bengal & Ors., the petitioner sought clarity on the responsibility for paying GST incurred on works contracts executed and completed after July 1, 2017, in situations where the contracts were awarded in the pre-GST regime or the post-GST regime. This article provides a detailed analysis of the case and its implications.
Background: The petitioner, engaged in the business of works contracting under the name “Bimal Roy,” had received multiple government work orders in both the pre-GST and post-GST periods. The estimation and tendering process for these contracts had begun before the GST regime came into effect, leading to complexities in applying GST to these projects.
Voluntary GST Payment: The petitioner voluntarily paid CGST and SGST in the amount of Rs. 45,61,502 on April 18, 2021, after initially receiving payment certificates from the government without the inclusion of GST tax.
Show Cause Notices: Subsequently, the GST authorities issued show cause notices and reminders, alleging suppression of taxable turnover. These notices and reminders triggered a series of responses and representations from the petitioner to the government contractees, requesting payment of GST tax and interest.
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