Nikhil Construction Vs State of U.P. And 2 Others (Allahabad High Court)
The Allahabad High Court is set to hear a GST rate dispute involving Nikhil Construction on July 25, 2025. The core issue revolves around whether a 5% or 12% GST rate applies to work completed on June 27, 2022, but invoiced on March 10, 2025, when the rate was 12%. The petitioner argues that under Section 14(a)(i) of the U.P. Goods and Services Tax Act, 2017, the invoice date should determine the rate, compelling the respondents to pay the balance 7%. The court has directed the respondents to seek instructions on this matter, highlighting the importance of clear reasoning in quasi-judicial orders, a principle upheld in various judgments.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. We have heard learned counsel appearing on behalf of the parties.
2. In the present factual matrix, the work carried out by the petitioner was completed on June 27, 2022 when the rate of tax (GST) was 5%. Subsequently, the rate of tax was changed from 5% to 12% as per the notification dated June 29, 2022 with effect from July 18, 2022.
3. The petitioner raised his invoice on March 10, 2025 including 12% tax and the payment was made by the respondents subsequently. However, the payment that was made, was for the entire amount along with 5% of tax.
