The Chhattisgarh High Court directed to file a fresh claim for a refund of Additional goods and service tax ( GST ) paid. The excess amount was due to a change from the agreed contracted amount and amount as the Introduction of GST. It was alleged that the revenue failed to grant refund/ reimbursement of 6% additional GST liability imposed upon them w.e.f. 18.07.2022 on the works contract being executed by the petitioners, even though the contract between the parties was signed prior to 18.07.2022.

The petitioners sought for a declaration that notification No.11/2017 Central Tax ( Rate ) dated 28.06.2017, as amended by notification No.03/2022-Central Tax (Rate) dated 13.07.2022 prescribing the rate of GST at 18% for works contract services, be declared inapplicable for the contracts which have been executed prior to 18.07.2022 and further the petitioners be declared entitled for refund of 6% of additional GST paid by them for the contract executed prior to 18.07.2022 from the respondent authorities on submission of valid proof thereof. The petitioners company are involved in construction of road, bridges, tolls etc and were awarded works contracts at the different point of time.

The main grievance of the petitioners is against the inaction on the part of the respondent State Authorities in not granting refund/ reimbursement of 6% additional GST liability imposed upon them w.e.f. 18.07.2022 on the works contract being executed by the petitioners, even though the contract between the parties was signed prior to 18.07.2022 and the tender was submitted and accepted by the respondent authorities with 12% rate of GST liability at the relevant point of time.

Senior counsel appearing for the petitioners submitted that the actions and inactions on the part of the respondents are wholly unreasonable, illegal, arbitrary and violative of fundamental rights of the petitioners enshrined under Article 14, 19 (1) (g) and 21 of the Constitution of India.  It was contended that the petitioners and other contractors at the time of submission of their bids submitted their offer/bid on the basis of GST liability @ 12% existing at the time of bid and calculated their bid price on the basis of applicable GST rate of 12%, but the increase rate of GST is being made applicable retrospectively despite contracts executed before 18.07.2022 without any refund or reimbursement mechanism, which is impermissible in the eyes of law. Justice Smt. Rajani Dubey C A directed the petitioner to make a fresh claim showing the difference of tax liability that was incurred at the time of submission of bids and the excess tax paid by him in the light of the introduction of the GST and upon such claim being made, the respondents were directed to forthwith process the same and after due scrutiny and enquiry, the petitioner therein be suitably reimbursed the additional tax burden incurred by him. The Court disposed of the writ petition. Mr Arvind P Datar with Mr. Harsh Wardhan appeared for the petitioner. Mr. Tushar Dhar Diwan and Mr. Chandresh Shrivastava appeared for the respondent.