Government Contracts Face GST Review: Petitioner Given 4-Week Window to Submit Representation for Comprehensive Tax Liability Assessment

HC ruled on GST liability for government contracts, directing petitioner to file representation with Additional Chief Secretary within 4 weeks. The authority must review tax burden implications, consult relevant departments, and make a final decision within 4 months. No coercive action will be taken against petitioner pending final determination, with opportunity to present supporting legal arguments.

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Issues involved:
The issues involved in the judgment are the liability of additional tax burden for government contracts awarded before and after the introduction of GST, the incorporation of applicable GST in the Schedule of Rates (SOR) for inviting bids, and the impact of unforeseen tax burden on ongoing contracts.

Liability of additional tax burden for government contracts:
The writ petition sought direction for the authority concerned to bear the additional tax liability for executing government contracts awarded before and after the GST regime without updating the Schedule of Rates (SOR) to include applicable GST in the Bill of Quantities (BOQ) for inviting bids.

Incorporation of applicable GST in SOR for inviting bids:
The petitioner requested relief for updating the State Schedule of Rates (SOR) to include applicable GST instead of the inapplicable West Bengal VAT for future government contracts. The judgment allowed the petitioner to file a representation before the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks.

Impact of unforeseen tax burden on ongoing contracts:
The judgment directed the Additional Chief Secretary to make a final decision within four months of receiving the petitioner's representation after consulting with relevant departments. The decision was to be based on the law, considering all relevant judgments of different High Courts that the petitioner intends to rely on. The petitioner was granted the opportunity to be heard before the final decision is made, and no coercive action was to be taken against the petitioner until the decision is finalized. Failure to make the representation within the stipulated time would render the order ineffective. The writ petition was disposed of with these observations and directions.

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