TaxTMI 
TaxTMI 
2026 (2) TMI 1452
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....der, and the petitioner was also awarded the work as evidenced by Ext.P1 work order dated 18.06.2019. An agreement was also entered into between the petitioner and the respondent - Municipality, as evidenced by Ext.P2, as per which the total estimate for the work is a sum of Rs.2,53,82,519.35. The petitioner contends that the amount quoted above and forming part of the agreement is exclusive of GST with reference to the provisions of the CGST/SGST Act, 2017. Therefore, with reference to various circulars issued by the Government, the petitioner state that while making periodical payments to the petitioner, GST was also paid to it. Later, pursuant to an audit report at Ext.P15, wherein it was recorded that the GST is included in the quote pl....
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....nction, the total amount submitted for approval should separately indicate the estimated cost and the applicable GST. However, the aforementioned requirement is with reference to the mandate for the Municipality while obtaining the administrative sanction. Clause 2 of Ext.P4 states that in the tender documents, the rate quoted should be "exclusive of GST" but "inclusive of all other taxes", etc. At the same time, it further states that the contractor is required to indicate separately the applicable GST in the tender document. According to Smt. V. Renju, the petitioner having not separately shown the GST in the tender document, the benefit cannot be extended to it. Even on the face of the afore, this Court notices that the tender documents,....
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....tes payment of GST for the "goods, services" procured by the Municipality. "Goods" and "Services" became taxable under GST only after 2017 and that is why such a stipulation came to be included, since till that date the norms could never include the GST component. 5. Similarly, the circular at Ext.P5 dated 27.11.2017 also requires to be noticed. It is the circular issued by the Chief Engineer attached to the Local Self Government Department, Thiruvananthapuram. A reading of the afore circular would also show that the tender requires to be placed without the GST component that while payments are being effected on the basis of the bills submitted, GST requires to be added and considered while honouring the commitments to the contractors, e....
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....ed by the bidders shall include all taxes and duties Construction Workers Welfare Fund Contribution etc, except the GST. 6. While finalizing the procurement of Goods, Services or both or Public Works, the total amount of the estimates should be arrived exclusive of Goods and Service Tax (GST). 7. For the purpose of determining the lowest bidder (L1), the rates quoted by the bidders exclusive of GST amount should be taken into consideration. 8. For the purpose of issuing Administrative Sanction, the total amount for approval should indicate the estimate amount and GST applicable amounts separately. 9. When the bills of any goods, services or both or Public Works procured are processed, the payment has to b....
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....urement of goods or services for public works should be exclusive of GST. Again, clause 7 also states that while identifying the L1 (lowest bidder), the rates as quoted by the bidder, exclusive of GST, need to be taken into account. Again clause 9 has used the word "PLUS" in capital letters, emphasising that tax requires to be separately paid to the contractor, from which the position is made clear. Similarly, clause 10 also considers the change as regards the GST rate, as has been noticed in Ext.P4 circular at clause 5. Thus, the circulars issued by the Government from time to time show that the contract is being finalised without taking into account the component of GST, and it is only upon the successful completion of work or with refere....
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....rded on the basis of the notice inviting tender dated 23.02.2019, and an agreement is also seen executed as evidenced by Ext.P2 and the work order granted to the petitioner on 18.06.2019. By the time the afore activities have taken place, admittedly, the circulars referred to earlier have been issued by the Government specifically providing that the GST component need not be originally included in the tender document and that it is required to be considered only when the periodical bills are presented by the petitioner/contractor. 10. I may also notice the provisions of Section 15 of the CGST Act, 2017, which reads as under: "Value of Taxable Supply .- (1) The value of a supply of goods or services or both shall be the transacti....