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2023 (8) TMI 396 - HC - GSTReimbursement of GST in respect of the works contract - Scope of tender / agreement - respondents contend that even though the form required the quoting of the amount less GST, since the contract itself provided that the contract amount would be inclusive of all taxes, GST has to be suffered by the petitioner - HELD THAT:- The Division Bench of this Court in THE KERALA LAND DEVELOPMENT CORPORATION LIMITED AND ORS VERSUS SEBASTIAN JOSE AND ORS. [2022 (6) TMI 1415 - KERALA HIGH COURT] has specifically considered an identical issue. It was found that the petitioner therein had bid for the work and had quoted the amount specifically excluding the component of GST from the quote in view of the condition contained in the notice inviting tender. It was further found that GST being a tax to be suffered by the ultimate beneficiary, the Corporation for whom the work is done by the contractor has to remit the same. It was held that The learned single judge was right in declaring that the GST component was not to be included as per clause 3.3.3 of Ext.P1 and the direction to pay the GST component by respondents 2 and 3 is in tune with the clauses of Ext.P1 and hence there are no ground to interfere with the judgment of the learned Single Judge, and hence the writ appeal is dismissed. Since the petitioner was required to make a quote excluding the GST amount, it is opined that the petitioner cannot be mulcted with a liability of payment of GST. The respondent who is the ultimate beneficiary of the services performed by the petitioner has to pay the GST in respect of the work carried out. The impugned orders are set aside - appeal allowed.
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