2025 (6) TMI 1071 - HC - GST

Challenge to one of the condition that was imposed in the tender notification dated 22.05.2025 imposing 18% GST payable by the participants in the tender - grievance of the petitioner is that in the tender notification dated 22.05.2025 issued by the 2nd respondent at clause No.23 the payment of 18% GST has been made mandatory - HELD THAT - Taking into consideration the notification issued by the Central Government as well as the Circular issued by the Commissioner of HR CE it is quite apparent that collection of human hair does not attract any GST and the present auction notification pertains to collection of human hair. Therefore the participants in the auction cannot be insisted to pay 18% GST. Accordingly clause 23 alone is interfered and it is made clear that the 2nd respondent will not insist for the payment of 18% GST from the participants in the public auction. This writ petition is disposed of.

Summary

The Madras High Court, through Justice N. Anand Venkatesh, addressed a writ petition challenging clause 23 of a tender notification dated 22.05.2025, which mandated payment of 18% GST by tender participants. The Court noted the Government of India, Ministry of Finance notification dated 28.06.2017 granting exemption from GST on human hair (unworked or waste) and a circular from the Commissioner of HR&CE dated 14.05.2025 confirming no GST is payable on auctions related to human hair collection. Given these authoritative pronouncements, the Court held that "collection of human hair does not attract any GST" and therefore, the 2nd respondent cannot insist on 18% GST payment from auction participants. The Court interfered with clause 23 accordingly and disposed of the petition with no costs.