GST on Works Contract ——-The petitioner sought directions to the respondents no. 2 to 5 to forthwith pay an amount of Rs. 7,97,88,026.31/- to the petitioner alongwith interest. The petitioner undertaking several works contracts for the respondents and has been raising running bills, but the payment of GST on such bills is not being made by the respondents. Prior to the GST regime, the petitioner had paid VAT and there was no dispute in respect of payments. The respondent no.1 issued a Government Order on 09.11.2017 directing various Heads of Departments that contracts for new works and contracts which were already in existence and were awarded before the GST regime, all were to be governed by the GST regime and the additional tax burden shall be computed with the help of formula with respect to existing contract provided under the Government Order dated 09.11.2017. Another clarification was issued in this regard on 26.10.2021. The petitioner's running bills/invoices have been paid by the respondents no. 3 to 5 after deducting tax at the rate of 2% (1% CGST and 1% SGST) which is only partial deduction of the total tax liability. The petitioner has made several requests, but the respondents’ no. 3 to 5 has not disbursed the GST amount to the petitioner.

Held that:- The Hon’ble High Court directed the petitioner to make a fresh representation to the respondent no.2 who shall seek a clarification from the Engineer-in-Chief and the respondent no. 1 and then decide the representation of the petitioner by a reasoned and speaking order within a period of two months.