Petitioner has challenged the action of the Opposite Parties in not reimbursing the differential tax amount arising out of change in tax regime from Value Added Tax (VAT) to Goods and Service Tax (GST) with effect from 1st July, 2017.
Work Contract under GST— The petitioner challenged the action of the opposite parties in not reimbursing the differential tax amount arising out of change in tax regime from VAT to GST. The main issue involved was that the difficulty faced by the contractors due to change in the regime regarding works contract under GST. The petitioner submitted that in view of the introduction of the GST, he is required to pay tax which was not envisaged while entering into the agreement. The respondent submitted that the Government has revised guidelines in this respect on 10.12.2018 in supersession of the guidelines issued vide Finance Department letter dated 07.12.2017.
Held that:- The Hon’ble High Court directed that the petitioner shall make a comprehensive representation before the appropriate authority within four weeks. In such a case, the authority would consider and dispose of the same, in the light of the aforesaid revised guidelines dated 10.12.2018 by 26.03.2021. No coercive action shall be taken against the petitioner till 26.03.2021.