Coimbatore Corporation Contractors Welfare Association Versus State of Tamil Nadu, The Commissioner of Municipal Administration, The Commissioner, Coimbatore Corporation, The Chief Accounts Officer, Coimbatore Corporation, The Cheif Engineer, Coimbatore Corporation, The Commissioner, GST Policy Section, The Commissioner of Commercial Taxes – 2017 (10) TMI 783 – MADRAS HIGH COURT – [2017] 1 GSTL 13 (Mad), 2018 (10) G. S. T. L. 165 (Mad.) – Works contract – levy of VAT or GST – case of petitioner is that the contract works for which the agreements were executed prior to 01.07.2017, GST cannot be imposed and 2% VAT alone is applicable – Held that: – there will be a direction to the Commissioner of Commercial Taxes to consider the representation given by the petitioner/ association and pass orders on merits and in accordance with law, within a period of four weeks from the date of receipt of a copy of this order – petition allowed by way of remand. – W. P. No. 24853 of 2017 Dated:- 5-10-2
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ernment issued notification notifying that 6% of the tax is leviable by the Central Government towards Works Contract. 5. The State Government is empowered to levy towards works contract tax in addition to the works contract tax imposed by the Central Government. Therefore, the contractor would be liable to pay 12% of tax towards works contract. 6. Therefore, the petitioner/association made representations on 05.07.2017 10.07.2017, 11.07.2017 and 11.09.2017 to the respondents stating that the contract works for which the agreements were executed prior to 01.07.2017 GST cannot be imposed and 2% VAT alone is applicable. 7. Alternatively the association stated that if the petitioners are compelled to pay anything over and above 2%, the respondent in addition to the value of the work done, has to remit the GST as per the notification, since the representations submitted by the petitioner/ association have not been considered and no orders were passed. 8. When the case came up for hearing o
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etc., who would not be in a position to specifically address the issue pointed out by the petitioner. 11. The learned Government Advocate has drawn the attention of this Court to G.O. Ms.No.264, Finance [Salaries] Department, dated 15.09.2017. The operative portion of the Government Order reads as follows :- 5. Under the new tax regime, GST (comprising CGST, SGST and IGST) on works contracts for Government work was intially notified at 18 percent. This had resulted in representations from contractors of ongoing works for compensation by procuring entity for increased tax liability over and above the contracted value of work. The difficulties arising out of increased GST on works contracts for Government work was deliberated in the GST Council Meetings held on 20th August 2017 and 9th September 2017. Consequently, the GST on works contracts for Government work is being reduced to 12 percent. This move more or less balances the taxes on works contracts in the pre GST and post GST regime
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