Consider Representation on Revising GST Rate on Works Contracts: Madras HC

By Editor4 Goods and Services Tax Judiciary November 6, 2017

TaxGuru Citation: 2017 taxguru.in 975
Case Name: Coimbatore Corporation Contractors Vs. State of Tamil Nadu (Madras High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Madras High Court

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Coimbatore Corporation Contractors Vs. State of Tamil Nadu (Madras High Court)

The petitioner is an association registered under the provisions of the Tamil Nadu Societies Act bearing Registration No. 81/2012. The Association was formed for the Welfare of the members of the Road Contractors, who have been carrying on works for the National Highways and Highways department and other Governmental organization.

2. The contractors used to remit 2% tax on value for the works executed by them towards the Works Contract Tax under the Tamil Nadu Value Added Tax, 2006 [hereinafter called as “the TNVAT”] in terms of Section 6 of the TNVAT Act.

3. After the enactment of the Central Goods and Services Tax Act, 2017 with effect from 01.07.2017, certain problems have arisen, which has compelled the petitioner to submit representations to the respondent.

4. The petitioner would state that on 22.08.2017, the Central Government issued notification notifying that 6% of the tax is leviable by the Central Government towards Works Contract.

5. The State Government is empowered to levy towards works contract tax in addition to the works contract tax imposed by the Central Government. Therefore, the contractor would be liable to pay 12% of tax towards works contract.