GST differential reimbursement in works contracts upheld under earlier coordinate bench directions

In works contract matters spanning the pre-GST and post-GST periods, the differential tax liability must be worked out and the concerned employer or department must reimburse the payable GST difference. Applying the earlier coordinate bench directions, the Court treated the petitioners' claim as covered by that precedent and held that the respondents were required to consider the representations accordingly. The petitioners were therefore entitled to reimbursement of the differential GST amount, and the respondents were directed to pay the amount reflected in the representations within the stipulated time.

---

---

Issues: Whether the petitioners were entitled to reimbursement of the differential GST amount from the respondent departments on the basis of their representations and the applicable directions in the earlier coordinate bench decisions.

Analysis: The petition was decided by following the earlier binding/co-ordinate bench view that in works contract situations spanning the pre-GST and post-GST periods, the tax difference has to be worked out and the concerned employer/department must reimburse the differential amount where payable. The Court accepted that the present claim stood covered by those directions and that the respondents were required to consider the representations accordingly.

Conclusion: The petitioners were entitled to reimbursement of the GST differential amount, and the respondents were directed to pay the amount reflected in the representations within the stipulated time.

---