Gordhandas Gobindram Vs State of Chhattisgarh (Chhattisgarh High Court)
Assessee allowed to take reimbursement of additional GST liability on contract/work order awarded in pre-GST regime
The Hon’ble Chhattisgarh High Court in M/s Gordhandas Gobindram v. State of Chhattisgarh [WPC No. 5471 of 2022 dated December 20, 2022] allowed the petition filed by the assessee to seek reimbursement of the additional tax liability on implementation of the Goods and Services Tax (“GST”) law for contracts and work orders which had been executed before the GST regime.
Facts:
This petition has been filed by M/s Gordhandas Gobindram (“the Petitioner”), who was awarded a contract/work order by the Public Works Department, Raipur (“the Respondent”) prior to the introduction of GST law. The Petitioner on account of the introduction of new GST law was required to pay certain additional tax liability, which the Petitioner now intends to get it refunded from the Respondent.
The Petitioner submitted that the Respondent itself has taken a policy decision vide order dated October 10, 2018 (“Impugned Order”) passed by the State Government to ensure the reimbursement of additional tax liability incurred by the contractors in respect of contracts, which were awarded prior to July 1, 2017 i.e. the date from which the GST law came into force.
Issue:
Whether the Petitioner is entitled to seek reimbursement of additional GST liability imposed after the introduction of GST law?
Held:
The Hon’ble Chhattisgarh High Court in WPC No. 5471 of 2022 held as under:
