iterest liability

[AMIT BATHAM]

One of my clients is a government contractor who completed road construction work for the central government in 2018-2019. The central government paid the basic amount but not GST because officials told the applicant that no budget was allotted for GST. The applicant paid GST in 2022-2023 from yourself and then approached the high court. After the high court order, the department paid the GST amount. The question now is whether the applicant is liable for interest or not because the PWD did not paid GST to the applicant

AI Summary

Contractor Granted GST Reimbursement for 2018-2019 Road Project; Interest Liability Dispute Ongoing. Legal Action Suggested. A government contractor completed road construction for the central government in 2018-2019, but the GST was unpaid due to a lack of budget. The contractor paid the GST in 2022-2023 and sought reimbursement through the high court, which was granted, but the interest liability remains unclear. One expert suggests the contractor is liable for interest due to delayed GST payment, while another argues that the due date extensions and government responsibility should exempt the contractor from interest. It is advised to pursue the matter legally, possibly through the high court, to seek interest recovery from the government department.