Court upholds rejection of bid for lack of GST registration in medical book tender.

The court upheld the rejection of the petitioner's bid for not fulfilling the GST registration requirement in a tender for medical books and journals. The court deemed the GST registration condition essential, citing the mandatory registration for suppliers under the Orissa Goods and Services Tax Act. Emphasizing compliance with tax laws, the court dismissed the petition, affirming the necessity of valid GST registration for suppliers in the tender process and vacating the interim order allowing the bid to proceed without the certificate.

---

---

Issues:
Challenge to rejection of bid due to non-fulfillment of GST registration requirement in tender for supply of medical books and journals.

Analysis:
The petitioner filed a petition challenging the rejection of its bid for not fulfilling the requirement of furnishing its GST registration as per the tender conditions. The petitioner argued that the GST registration requirement was non-essential as no GST is payable on printed books under the Orissa Goods and Services Tax Act (OGST Act). However, the respondent contended that under Section 22 of the OGST Act, any supplier making a taxable supply of books or services must be registered, which is mandatory irrespective of whether the goods are taxable or not.

The petitioner's counsel requested the deletion of the GST registration condition, claiming it was not present in previous tenders and that the petitioner was still asked to supply books even after the bid rejection. The court noted that the NIT explicitly mandated the furnishing of GST registration and found it to be an essential condition based on the counter affidavit filed by the respondent. The court highlighted that other bidders had complied with the requirement, emphasizing its importance in ensuring compliance with tax laws.

Regarding the argument that certain products may be exempt from GST currently but could be taxable in the future, the court agreed with the respondent's stance on the necessity of valid GST registration for suppliers. The court, therefore, dismissed the writ petition, upholding the mandatory nature of the GST registration requirement in the tender process. The interim order allowing the tender process to continue without a final decision was vacated, affirming the rejection of the petitioner's bid for non-submission of the GST certificate.

---