Concessional GST on works contracts depends on recipient status and non-commercial use, with interest and penalties for short-payment.
Case-Laws
GST
The concessional GST rate for works contracts requires a qualifying recipient and predominantly non-commercial use. Co-operative society registration and government funding or supervision do not by themselves establish Government Entity status, while buildings intended for manufacturing yarn for sale serve a commercial purpose. Interest on unpaid differential GST is compensatory and is not waived for bona fide reliance. Section 73(9) penalties apply without fraud and cannot be waived for bona fides; payment of tax and interest within 30 days of notice provides the statutory route to avoid penalty. Cum-tax valuation requires tax-inclusive receipts, not consideration invoiced exclusive of tax. Input tax credit requires proof of suppliers' tax payment; a return mismatch accompanied by failure to prove payment can result in disallowance. Interest under Section 50(3) applies to credit wrongly availed and utilised.
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