GST Calculation Upheld: Petitioner's Challenge Rejected, Tender Payment Confirmed as Per Statutory Guidelines The SC dismissed the petitioner's challenge to GST payment above the tender amount. After examining the bid schedule and tender documents, the court found ...
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GST Calculation Upheld: Petitioner's Challenge Rejected, Tender Payment Confirmed as Per Statutory Guidelines
The SC dismissed the petitioner's challenge to GST payment above the tender amount. After examining the bid schedule and tender documents, the court found no irregularity in the respondents' demand for 18% GST on the tender amount. The petition was rejected, with each party directed to bear their own costs, affirming the validity of the GST calculation in the e-tender process.
Issues involved: Challenge to the demand for paying GST above the tender amount.
Analysis: The case involved a petition challenging the demand of the respondents for paying GST above the tender amount of Rs.1,61,74,260. The respondent had floated a short-term e-tender for setting up temporary 'Mela' shops during the "International Minjar Fair, 2022". The petitioner filled the basic rate as Rs.1,37,00,000 during the tender process, but the site did not accept the amount until 18% GST was added, resulting in a total of Rs.1,61,74,260. The petitioner argued that since the total amount inclusive of taxes was the same as the basic rate, they should not be liable to pay any amount over Rs.1,61,74,260.
The court examined the bid schedule appended with the petition, where the basic rate and the total amount with taxes were shown to be the same. The petitioner contended that the respondents should have accepted the bid amount without additional GST. However, the respondents argued that the petitioner was liable to pay both the bid amount and 18% GST. The court reviewed the tender document and found that the bid amount entered by the petitioner was auto-reflected in the total amount with taxes, indicating no auto-generation of amounts after adding GST.
Moreover, the court compared the petitioner's case with another company that participated in the tender process, where the basic rate quoted was different but also reflected the same in the total amount with taxes. Based on the evidence and submissions, the court concluded that there was no irregularity or illegality in the demand for GST on the tender amount. Consequently, the petition was dismissed, and each party was directed to bear their own costs. The pending application, if any, was also disposed of in the judgment.
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