Coimbatore Road Contractors Welfare Association Versus State of Tamil Nadu, The Chief Engineer, Chennai, The Regional Officer, Chennai, The Superintending Engineer, Salem And The Commissioner of Commercial Taxes, Chennai
GST
2017 (12) TMI 515 – MADRAS HIGH COURT – 2017 (7) G. S. T. L. 4 (Mad.) , [2017] 1 GSTL 11 (Mad)
MADRAS HIGH COURT – HC
Dated:- 10-10-2017
W.P.No.26222 of 2017 And W.M.P.No.27871 of 2017
GST
MR. T. S. SIVAGNANAM, J.
For The Petitioner : Mr.S.Doraisamy
For The Respondents : Mr.K.Venkatesh Government Advocate
ORDER
Heard Mr.S.Doraisamy, learned counsel for the petitioner and Mr.R.Rajeswaran, learned Special Government Pleader accepts notice for respondents 1 to 4. With the consent on either side, the Writ Petition is taken up for final disposal.
2. The petitioner is an association registered under the provisions of the Tamil Nadu Societies Registration Act, 1975 bearing Registration No.242/2010. The Association was formed for the Welfare of
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ion made representations on 05.07.2017, 28.08.2017 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.
4. Alternatively, the petitioner/Association stated that if the petitioners are compelled to pay anything over and above 2%, the respondents, 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.
5. When the case came up for hearing, the petitioner was directed to implead the Secretary to Government, Commercial Taxes Department and the Commissioner of Commercial Taxes. Accordingly, an application was filed to implead and the same was ordered today.
6. Mr.K.Venkatesh, learned Government Advocate [Taxes] accepted notices for the newly impleaded respondents 5 & 6 and it appears that he had personally spoken t
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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.
6. Pending notification of guidelines in the matter, the Government now direct that all departments and procuring entitles shall made 'on account' payment of bills presented by contractors, restricting the payments to the value due as per existing contract agreements. Any difference on account of final payment due based on the guidelines to be issued and the 'on account'
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