Challenge of 12% GST on Works Contract by PWD Contractor

The petitioner, a contractor under PWD(Roads Division), challenged the imposition of 12% GST on a works contract awarded under the VAT regime. Despite submitting bills and raising the issue with the Chief Engineer PWD(Roads, no resolution was reached. The Court issued notice, and the matter was listed for further orders along with similar cases. The petitioner's request for appropriate direction and order regarding the GST imposition remains pending for further judicial consideration, indicating ongoing legal proceedings for a comprehensive review of the issue.

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Issues:
1. Imposition of 12% GST on works contract executed under the VAT regime.
2. Non-attendance to the representation by the Chief Engineer PWD(Roads).
3. Prayer for appropriate direction and order from the Court.

Analysis:
1. The petitioner, a registered Class 1A contractor under PWD(Roads Division), was awarded a contract in response to an NIT floated by the Chief Engineer PWD(Roads). An agreement was executed between the petitioner and respondent departments, directing the petitioner to proceed with the work. However, the imposition of 12% GST on the works contract, which was originally awarded under the VAT regime, is contested by the petitioner as contrary to law. The petitioner submitted bills totaling &8377;2,64,15,484, out of which &8377;2,18,87,515 was received, with &8377;26,26,501 being deducted as GST. The petitioner's representation to the Chief Engineer PWD(Roads regarding this issue remained unattended, leading to the filing of the writ petition seeking appropriate direction and order from the Court.

2. Notice was issued returnable by three weeks, with the learned standing counsel appearing on behalf of all respondents and accepting the notice. As the standing counsel has appeared, no fresh notice was deemed necessary. The petitioner was permitted to serve extra copies on the counsel for the respondents within one week. It was noted that similar matters were scheduled after three weeks, and the present matter was directed to be listed along with those cases for further orders.

3. The Court listed the matter along with other related cases for further order, with the prayer for interim relief to be considered on the next returnable date. The petitioner's request for appropriate direction and order from the Court regarding the imposition of GST on the works contract executed under the VAT regime remains pending for further judicial consideration. The legal proceedings are set to progress in conjunction with similar matters, ensuring a comprehensive review of the issue at hand.

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