GST reimbursement under public contracts follows statutory liability where work is executed after the GST regime begins.

Where a public contract was executed after the GST regime came into force, the contractor's statutory liability to pay GST on the completed work supported reimbursement of the GST component by the service recipient. The analysis treats the contract value and service relationship as giving rise to a corresponding obligation on the department to reimburse the tax amount claimed in the representation. On that basis, writ relief by mandamus was considered appropriate and the department was directed to pay the GST reimbursement within the time granted.

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Issues: Whether the respondent was bound to reimburse the GST amount payable on the completed tender work under the Central Goods and Services Tax Act, 2017.

Analysis: The work order and execution of the contract were subsequent to the coming into force of the Goods and Services Tax regime. The contractor had rendered service and was liable to pay GST as a statutory obligation, and the department, as service recipient, was correspondingly liable to reimburse the GST component on the contract value. In view of the admitted non-payment and the statutory nature of the liability, a writ of mandamus was warranted.

Conclusion: The respondent was held bound to reimburse the GST amount claimed in the representation.

Final Conclusion: The writ petition succeeded and the department was directed to pay the GST reimbursement within the time granted.

Ratio Decidendi: Where a public contract is executed after the GST regime has come into force, the service recipient may be directed in writ jurisdiction to reimburse the statutory GST component payable on the contract work.

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