National Highway Authorities directed to revise GST rate on works contract to 18%

KCP Infra Limited Vs Principal Secretary (Madras High Court)

Madras High Court held that on account of revision of GST rate on works contract to 18% instead of earlier 12%, the court directed the National Highway Authorities to revise GST rates on bills raised by the petitioner (works contractor).

Facts- The petitioner is a Works Contractor for the National Highways. According to him, GST rates in respect of the bills raised by the petitioner has now been revised from 12% to 18%. In such circumstances, the petitioner has given a representation to the respondents 2 and 3 to revise the GST rates in respect of the bills raised by the petitioner from 12% to 18%. Since the representation has not been considered till date, they have filed this writ petition.

Conclusion- No prejudice would be caused to the respondents if the petitioner’s representation as stated supra is considered, on merits and in accordance with law within a time frame to be fixed by this Court.

This court directs the respondent 2 and 3 to pass final orders, on merits and in accordance with law on the petitioner’s representation requesting the respondents to pay GST rates in respect of the bills raised by the petitioner at the rate of 18% instead of 12% pursuant to the recent revision of the GST rates within a period of eight weeks from the date of receipt of a copy of this order.

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

By consent of both the parties, this writ petition is taken up for final disposal in the admission stage itself.

2. This writ petition has been filed for a Mandamus seeking for a direction to the respondents 2 and 3 to pass final orders on the petitioner’s representation dated 22.07.2022 requesting the respondents to revise the payment of GST rates in the payment of bills to the petitioner company at the rate of 18% instead of 12% as done previously.

3. The petitioner is a Works Contractor for the National Highways. According to him, GST rates in respect of the bills raised by the petitioner has now been revised from 12% to 18%. In such circumstances, the petitioner has given a representation to the respondents 2 and 3 to revise the GST rates in respect of the bills raised by the petitioner from 12% to 18%. Since the representation has not been considered till date, they have filed this writ petition.

4. Heard Mr.C.P.Hem Kumar, representing for M/s.Ganesh and Ganesh, learned counsel for the petitioner and Mr.T.K.Saravanan, learned Government Advocate, who accepts notice on behalf of the respondents.

5. No prejudice would be caused to the respondents if the petitioner’s representation as stated supra is considered, on merits and in accordance with law within a time frame to be fixed by this Court.

6. For the foregoing reasons, this Court directs the respondents 2 and 3 to pass final orders, on merits and in accordance with law on the petitioner’s representation dated 22.07.2022 requesting the respondents 2 and 3 to pay GST rates in respect of the bills raised by the petitioner at the rate of 18% instead of 12% pursuant to the recent revision of the GST rates within a period of eight weeks from the date of receipt of a copy of this order.

7. With the above direction, this writ petition stands disposed of. No costs.