Pre GST Works Contracts – Enhanced GST rates shall be borne by the awarder – Madras HC

Subaya Constructions Company Ltd. Vs Tamil Nadu Water Supply and Drainage Board (Madras High Court) The Hon’ble High Court of Madras (Madurai Bench) held in Subaya Constructions Company Ltd. Vs. Tamil Nadu Water Supply & Drainage Board (W.P.(MD) No. 15967 of 2020 dated: 08.03.2021), that in case of a works contractor who entered in to the contract before the introduction of GST, he is liable to pay tax applicable to the previous VAT regime only but the differential tax liability (GST) has to be   borne by the awarder. This situation arises wherein the rate of GST is higher than that of...