Water Authority to bear GST burden incurred during contract period

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As per High court of Kerala, Reena Engineers & Contractors (P.) Ltd. vs. Kerala Water Authority,  Section 2(119) of the Central Goods and Services Tax Act, 2017/Section 2(119) of the Kerala State Goods and Services Tax Act, 2017,  Works contract , Assessee was issued a works contract by Kerala Water Authority before GST regime was brought into effect in State of Kerala , Water Authority at time of contract had agreed that any excess in taxes and duties within contract period would be borne by it .

Assessee completed work after implementation of GST regime and paid GST at rate of 18 per cent , It made several representation before Water Authority for payment of bill amount and GST already deposited, but got no response .Assessee filed written petition praying that Water Authority be directed to honour its bill and to pay GST already deposited by it , Whether Water Authority was to be directed to immediately take up representations of assessee and issue orders on same adverting specifically to terms of contract – Held, yes

Citation: [2018] 95 taxmann.com 175 (Kerala)