This court sustain the contention of the petitioner's counsel that the quotation in the instant case was on itemwise basis. The respondents are directed to rework the terms of the contract and enter into a revised agreement with the petitioner.
Work Contract under GST –– The petitioner entered into a contract with Tamil Nadu Water Supply and Drainage Board for laying Under Ground Sewerage works. The quotation given by the petitioner was inclusive of TNVAT and Excise Duty components. As per Contract, deduction at source towards sales tax shall be made at 2% for civil works contract and at 5% for all other works contract. After GST Regime, the distinction between civil works and other works became irrelevant since all works contracts for construction activities came to be taxed at 12%. The State government issued G.O.Ms.No.296 Finance (Salaries) Department, dated 09.10.2017. The Government took note of the fact that the price bid to be quoted should be inclusive of taxes and duties. The entire GST on the supply will have to be finally borne by the purchaser. The Government came out with a formula as set out in paragraph No.10 of the said Government Order. The respondent counsel pointed out that after GST, a revised agreement was entered into between the parties and the petitioner having signed the same. The petitioner's counsel submitted that he was under compulsion to sign the revised agreement.
Held that:- The Hon’ble High Court directed respondent Board to calculate the tax component in the contract price and rework the same in terms of paragraph No. 10(a) of the order dated 09.10.2017.