GST implication on Work Contracts – The petitioner company a contractor, engaged in the business of water supply distribution to the Tamil Nadu Water Supply and Drainage Board. He was awarded with a contract by the TWAD board for providing improvements to water supply distribution. Earlier tender notification was issued on 19.09.2016, which was issued prior to GST. A fresh tender notification was issued on 20.03.2017. The petitioner participated in the tender and he was declared as successful bidder and the work was awarded to him on 16.06.2017. Thereafter, GST regime was brought into force w.e.f. 01.07.2017. In the mean time, the 1st respondent issued the impugned GO in G.O.Ms.No.296, Finance (Salaries) Department, dated 09.10.2017, in view of the GST, changed the mode of the tax under contract. Based on the above GO, the 2nd respondent issued a circular to all the Chief Engineers and Superintending Engineers directing them to enter into a supplemental agreements and the 5th respondent, by his letter dated 12.12.2017, revised the bills raised by the petitioner and later on, the 3rd respondent had passed the consequential impugned order dated 19.12.2017 directing the 5th respondent to implement the GO and enter into supplemental agreement as per the GO. It is these orders which are under challenge in this writ petition.
Held that:- The Hon’ble High Court dismissed the writ and held that authority is empowered to issue any GO for the purpose of removing any difficulties in the implementing the Act and in view of the introduction of GST. Further, by way of impugned GO, the respondent board was directed to initiate the negotiation with the existing contractors before entering into supplemental agreements and hence, it is always open to the petitioner to appear before the respondent concerned and submit his objection before entering into any supplemental agreement.—The Indian Hume Pipe Co. Ltd. Vs The Government of Tamil Nadu, The Managing Director, The Joint Managing Director, The Chief Engineer, The Executive Engineer, Tiruppur  08 TAXLOK.COM 134 (Madras)