Case Law Details
J.K. Constructions Vs Chief Engineer (Madras High Court)
Madras High Court held that for contract entered prior to 01.07.2017 under National Highways and Public Works Department differential tax liability is to be computed as per Government Orders and any recovery affected from the contractor contrary to the methodology will be refunded.
Facts- The petitioner is a contractor for National Highways and Public Works Department (PWD) of the State of Tamil Nadu. The issue in these writ petitions relates to liability to commercial taxes post the onset of Goods and Services tax, with effect from 01.07.2017.
The Finance Department has issued two Government Orders viz., one in G.O.Ms.No.264, Finance (Salaries) Department dated 15.09.2017 and the second in G.O.Ms.No.296, Finance (Salaries) Department dated 09.10.2017. The Government orders set out the methodology of computation of GST liability in respect of contracts executed prior to 01.07.2017 and make it clear that any difference in liability shall be made good by the purchaser, in this case, the Highways and Public Works departments.
The turnover from contract was liable to VAT at the rate of @ 2% prior to 01.07.2017 and 12% post 01.07.2017 under the Goods and Services enactment. It is the petitioners case that the difference in tax liability must be met by the respective purchasers as per the government orders.
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Author Bio
WORKS CONTRACT GST NOW A DAY 18 %
SO ITC CREDIT IN ELE.CR. LEDGER BALANCE IS REFUND ?
WE CLAIM REFUND OR NOT PL.GIVE THE ANSWER