Vishal Verma Vs Union of India (Jammu & Kashmir High Court)
Jammu Kashmir High Court held that contractor is liable to pay GST at rates prevailing on last date for receipt of tender. Recommendations of the GST Council, as already held, are only recommendations and cannot be taken as notifying new rates of GST.
Facts- Vide SRO-GST-11 dated 8th July, 2017, the Government of Jammu & Kashmir notified different rates of taxes on intra-State supply of services of various description. The construction services under Heading 9954 were notified to be taxed at the rate of 9%. However, in the 20th GST Council meeting held on 5th August, 2017, a decision was taken to reduce the rate of GST on Works Contract Services from 18% to 12 %. This information, as is claimed by the review petitioner, was available with the review petitioner when he submitted his tender(s). The review petitioner submitted his tenders after the decision of GST Council recommending reduction of rate of GST on works contract from 18% to 12%. Formal notification by the Government of Jammu & Kashmir in terms of SRO-GST-06 (Rate) notifying the new rates of GST was issued on 21st September, 2017, which was admittedly after the submission of the bids by the review petitioner as also the last date fixed for submissions of tenders i.e. 01.08.2017. The GST rates came to be reduced from 18% to 12% vide notification dated 21st September, 2017. The bid(s) submitted by the review petitioner were accepted by the department concerned, works allotted and commenced after the issuance of notification dated 21st September, 2027.
