9911796707
TMI Blog2024 (6) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... by the petitioner. The other writ petitions have been filed for direction to the respective respondents to reimburse the GST paid along with appropriate interest and penalty by the respective petitioners . 2. The petitioners are the suppliers of works contract service and they had registered under the Tamilnadu Goods and Services Act, 2017 (hereinafter called as 'TNGST Act') and Central Goods and Services Act, 2017 (hereinafter called as 'CGST Act'). The respondents floated tenders in accordance with the Tamilnadu Transparency in Tenders Act, 1988 and its Rules, 1998 for various works. The tenders are floated through Tamilnadu Government e-procurement system. The petitioners submitted their bid for tender. The relevant tend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e GST enactments. Further, applicable rate of GST for works contract services involving predominantly earth works i.e.constituting more than 75% of the value of the works contract to various Government Departments or Government entitles shall be taxed at 5% (CGST 2.5% + SGST 2.5%) as per Notification No.31/2017 - Central Tax (Rate) dated 13.10.2017. Therefore, the petitioners statutorily obliged to raise invoices in the manner prescribed in Section 31 of the CGST / TNGST Act, 2017. A registered person supplying taxable goods or services must issue a tax invoice showing the description, quantity and value of goods / value of services and the tax charged thereon and such other particulars as may be prescribed. The Government of Tamilnadu had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount already paid to them and rejected the claim of the petitioner. 3. On perusal of the counter filed in some of the writ petitions by the respondents, revealed that to ease transition from the Era of Value Added Tax to Goods and Services Tax, Tamilnadu had issued Government orders in GO.Ms.No.264 Finance Department dated 15.09.2017 and GO.Ms.No.296 Finance Department dated 09.10.2017. Accordingly, the contractor is eligible to get GST amount after deducting the subsumed tax as per the GO.Ms.No.296 dated 09.10.2017. 4. Heard, the learned counsel appearing on either side. 5. Similar issue has already been dealt with by this Court in the case of Subaya Constructions Company Ltd. Vs. Commissioner of Municipal Administration, Chennai repor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the basis for estimating the value of subsumed tax. If, after negotiation, the contracted value is less than the bid value, the tax quoted shall be proportionately reduced to arrive at estimate of the value of subsumed tax. For instance, if the bid value was Rs. 50 lakh and the break up of tax is Central Excise Duty of Rs. 1 lakh and VAT or CGST of Rs. 1 lakh, the corresponding subsumed tax as per his break up of taxes is Rs. 2 lakh and after negotiation, the contracted value was reduced to Rs. 48 lakh, the subsumed tax shall be taken as Rs. 2 lakh x 48/50=Rs.1.92 lakh. 12. The procuring entities shall negotiate existing agreements with works contractors and enter into supplemental agreements with revised agreement value fixed as the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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