GST reimbursement for post-GST works contracts requires fresh consideration under the notification's post-GST clause.

The Calcutta HC construed the notification dated 16 August 2017 on adjustment of tax impact in works contracts after GST and held that paragraph 3(iv) was limited to pre-GST contracts, so it could not be used to refuse reimbursement for contracts executed after 1 July 2017. Paragraph 4 was treated as governing post-GST contracts and ongoing projects, under which GST applied. As the notification had been misconstrued, the petitioner was entitled to fresh consideration of its claim for reimbursement of the GST component, and the competent authority was required to pass a reasoned order after hearing the petitioner.

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Issues: Whether the petitioner was entitled to reconsideration of reimbursement of GST paid on works contract services for the post-GST period under the notification dated 16 August 2017.

Analysis: The dispute turned on the construction of the notification governing adjustment of tax impact in works contracts after the introduction of GST. The Court held that paragraph 3(iv) was confined to pre-GST contracts and could not be used to deny reimbursement for contracts executed after 1 July 2017. Paragraph 4 of the notification was treated as governing post-GST contracts and ongoing projects, under which GST was applicable. In that context, the respondents had misconstrued the notification, and the matter required reconsideration by the departmental authority.

Conclusion: The petitioner was entitled to a fresh consideration of its claim for reimbursement of the GST component for the relevant period, and the competent authority was directed to pass a reasoned order after hearing the petitioner.

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