Levy of GST on works contract executed prior to 01.07.2017
Levy of GST—On Contracts executed prior to 01.07.2017—– The petitioner Builders Association of India prayed for a direction to the respondents to consider and decide its representation dated 02.01.2021 within a period of two months. The members of petitioner- Association have entered into the contract of infrastructure development prior to enactment of GST and they were paying tax levied under the VAT regime of 2002. The service tax for construction work was mentioned in the negative list, on account of which, the members of petitioner-Association were paying VAT only. After enactment of GST, the members of petitioner-Association have been subjected to payment of GST. The petitioner counsel submitted that the differential amount of GST as against VAT is around 8 to 10 percent more. On account of extra burden of tax in the form of GST regime, the entire business activities of the trade have been paralyzed and some of the members of petitioner-Association were compelled to stop the work. In absence of any clear direction, the respondents are not deducting TDS whereas all the agreements were executed prior to 01.07.2017.
Held that:- The Hon’ble High Court directed that the Chief Secretary, Government of Madhya Pradesh, Bhopal to decide the representation filed by the petitioner- Association by a speaking order after providing opportunity of hearing to the representative of the petitioner-Association within a period of three months.
Levy of GST on works contract executed prior to 01.07.2017
Levy of GST—On Contracts executed prior to 01.07.2017—– The petitioner Builders Association of India prayed for a direction to the respondents to consider and decide its representation dated 02.01.2021 within a period of two months. The members of petitioner- Association have entered into the contract of infrastructure development prior to enactment of GST and they were paying tax levied under the VAT regime of 2002. The service tax for construction work was mentioned in the negative list, on account of which, the members of petitioner-Association were paying VAT only. After enactment of GST, the members of petitioner-Association have been subjected to payment of GST. The petitioner counsel submitted that the differential amount of GST as against VAT is around 8 to 10 percent more. On account of extra burden of tax in the form of GST regime, the entire business activities of the trade have been paralyzed and some of the members of petitioner-Association were compelled to stop the work. In absence of any clear direction, the respondents are not deducting TDS whereas all the agreements were executed prior to 01.07.2017.
Held that:- The Hon’ble High Court directed that the Chief Secretary, Government of Madhya Pradesh, Bhopal to decide the representation filed by the petitioner- Association by a speaking order after providing opportunity of hearing to the representative of the petitioner-Association within a period of three months.