Shree Contractor Vs State of Kerala (Kerala High Court)
Kerala High Court held that the excess GST liability pertaining to the transactions relating to the contract is question needs to be reimbursed to the petitioner as per the terms and conditions stated in the contract. Accordingly, writ allowed to that extent.
Facts- The Petitioner is a partnership firm and is engaged in the construction work including the works for the Government Departments. The petitioner was entrusted with the work at the instance of the Kerala Water Authority. The petitioner completed the work on 31.03.2023. However, according to the petitioner, the differential amount receivable by the petitioner towards the increase in the rate of GST was not paid by the respondents, despite the fact that they are under the contractual obligation to pay the same.
Conclusion- Held that in the light of the terms and conditions in the contract, and the liability of the petitioner to pay the tax @18%, it is to be held that, if the petitioner was found liable to pay tax at the rate of @18% pertaining to the transactions relating to the contract in question, under no circumstances, the petitioner could be denied the reimbursement of the aforesaid payment. Therefore, as far as the said issue concerned, it is to be held that, in case the petitioner produces records to show that the petitioner had paid the tax @18% in respect of the works carried out concerning the contract entered into between the petitioner and the respondents, the petitioner shall be granted reimbursement of the amount.
