GST UPDATE

????Desk of CA. Praveen Sharma 660 Series (CAPS)????

KARNATAKA HIGH COURT IN THE CASE OF Sweet Home Constructions Reimbursement of differential GST for works contracts

?Petitioner’s Request : The petitioner sought a writ of mandamus directing the respondents to refund the differential GST amount paid for works executed, as per their representation dated 21.11.2024.

?Court’s Observations:

?The issue is already settled by a Coordinate Bench in W.P. No. 9721/2019 & W.P. No. 104908/2023, where similar petitions were allowed, directing government agencies to reimburse GST on works contracts

?Since the petitioner's case is identical, the court ruled that they are entitled to the same relief.

Final Order:

?The writ petition is allowed.

?Respondents must reimburse the GST amount as per the representation dated 21.11.2024.

?Payment must be made within six weeks from the date of receipt of the order.

?This ruling reaffirms the liability of government departments to reimburse GST paid by contractors where applicable.