GST rate enhancement on works contracts supported reimbursement of the differential, and an alternative contractual remedy could not bar the writ claim.

Enhanced GST on works contracts from 12% to 18% created an entitlement to reimbursement of the 6% differential for the period 01.01.2022 to 30.09.2022, where the contractor discharged tax at the higher rate but the running bills were released only at 12%. The Court also held that the objection based on an alternative contractual dispute-resolution remedy could not defeat the writ claim because no disputed question of fact arose requiring relegation to that mechanism. The Government entity was directed to pay the differential within three months, with interest at 6% per annum for delay beyond that period.

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Issues: Whether the petitioner was entitled to reimbursement of the additional GST differential of 6% for the period 01.01.2022 to 30.09.2022, and whether the objection based on an alternative contractual remedy could defeat the writ claim.

Analysis: The petitioner's works were subject to GST at 12% earlier and, by the subsequent notification, the applicable rate was enhanced to 18% from 01.01.2022. The respondents continued to release running bills at 12% while the petitioner discharged GST at the enhanced rate. The departmental stand also acknowledged the enhanced rate and the liability of the Government entity to pay the differential. The Court found that no disputed question of fact arose so as to compel relegation to the dispute resolution mechanism under the agreement.

Conclusion: The petitioner was held entitled to payment of the GST difference at 6% for the relevant period, to be paid within three months, with interest at 6% per annum if payment was delayed beyond that period.

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