High Court of Karnataka
Office of Principal Commissioner GST and Central Excise v. R. Chandrashekar
WRIT APPEAL NOS. 1587, 1599, 1638 AND 1647 OF 2023 (T-RES)
The ruling in brief
Where contractors executing government works based on pre-GST tenders with tax-inclusive rates faced increased GST liability post- 01.07.2017, statutory liability to pay GST remained unaffected by reimbursement disputes with Employers, and no judicial direction could permit filing revised or amended returns, or waive penalty, interest or limitation, contrary to statutory provisions, thus directions easing such compliance were to be set aside
Where government contractors with pre-GST tax-inclusive contracts incurred additional GST liability on works/payments executed after 01.07.2017, direction to reimburse differential tax applied only to concerned Employers and not tax authorities, restricting liability and benefit of revised GST-inclusive recalculation solely to parties to contract and not extending to Revenue authorities
Provisions considered
Section 39, read with sections 37 and 50, of Central Goods and Services Tax Act, 2017/Karnataka Goods and Services Tax Act, 2017; Section 9 of Central Goods and Services Tax Act, 2017/Karnataka Goods and Services Tax Act, 2017
This summary is for general information and is not legal advice. Read the full decision and the applicable law before relying on it.