Differential GST reimbursement allowed where the tax rate rose from 12% to 18%, and arbitration was not required.

The petitioner's works were subjected to GST at 12% before the rate increased to 18% from 01.01.2022, and tax was thereafter paid at the enhanced rate on subsequent invoices. The State GST Department accepted that the higher rate was payable by the Government entity, so the petitioner was entitled to reimbursement of the 6% differential GST for the relevant period. The objection that the petitioner should pursue an arbitration-based contractual remedy was rejected because no disputed questions of fact required relegation to that mechanism. Payment was directed within the time granted, with interest at 6% per annum payable on default.

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Issues: Entitlement of the petitioner to reimbursement of the differential GST amount for the period from 01.01.2022 to 30.09.2022, and the effect of the respondents' objection as to alternative remedy.

Analysis: The petitioner's works were subjected to GST at 12% earlier and, upon enhancement of the rate to 18% with effect from 01.01.2022, the petitioner paid tax at the enhanced rate on the invoices raised thereafter. The State GST Department also accepted that the rate had been enhanced and that the higher rate was payable by the Government Entity. The objection based on an arbitration remedy was not accepted, as no disputed questions of fact required relegation of the petitioner to the contractual dispute mechanism.

Conclusion: The petitioner was held entitled to receive the differential GST amount of 6% for the relevant period, with payment to be made within the time granted by the Court, and interest at 6% per annum to follow upon default.

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