Case Law Details
Babun Rakshit Vs State of West Bengal & Ors. (Calcutta High Court)
This article delves into a recent judgment from the Calcutta High Court that addresses a Goods and Services Tax (GST) liability dispute. The dispute revolves around works contracts executed both before and after the introduction of the GST regime in India, and the petitioner’s contention that they are not liable for the GST liability.
Background of the Case: The petitioner has approached the Calcutta High Court under Article 226 of the Constitution of India, seeking an order or direction regarding GST liability incurred on works contracts completed after 1st July 2017. These contracts were awarded either in the pre-GST or post-GST regime. The primary issue is the inclusion of GST in the contract value, a practice that the petitioner claims was impossible due to the transition between tax regimes.
Petitioner’s Identity: The petitioner, a registered entity under the GST Act, is identified as Babun Rakshit, a sole proprietorship business located in Alipurduar, West Bengal.
Chronology of Events: The petitioner received work orders during 2017-2018 for construction projects. The estimation and tendering process began before the GST regime change, with work orders issued both before and after the introduction of GST.
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