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IN THE HIGH COURT OF ORISSA AT CUTTACK

W.P.(C) No.32342 of 2022

Sabita Choudhury

….

Petitioner

M/s. P. Ch. Nayak and associates, Advocates

-versus-

State of Odisha and others

….

Opposite Parties

Mr. Ishwar Mohanty, ASC

CORAM:

THE CHIEF JUSTICE

JUSTICE M.S. RAMAN

ORDER

18.01.2023

Order No.

01.

1. It is submitted at the Bar that, the present writ petition being

identical to W.P.(C) No.38490 of 2021, the same may be disposed

of in terms of the order dated 14^th December, 2021 passed in

W.P.(C) No.38490 of 2021.

2. By way of this writ petition, the Petitioner has challenged the

action of the Opposite Parties in not reimbursing the differential tax

amount arising out of change in tax regime from Value Added Tax

(VAT) to Goods and Service Tax (GST) with effect from 1^st July,

2017.

3. Batch of writ petitions are being filed on this issue. The main

issue involved in such matters is that the difficulty faced by the

contractors due to change in the regime regarding works contract

under GST. The grievance of the Petitioner is that in view of the

introduction of the GST, Petitioner is required to pay tax which was

not envisaged while entering into the agreement.

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4. The Government has now come out with a revised guidelines in

this respect in supersession of the guidelines issued vide Finance

Department letter dated 7^th December, 2017. He has filed

Additional Counter Affidavit of Opposite Party-authority in similar

cases annexing the revised guidelines relating to works contract

under GST issued by the Government of Odisha, Finance

Department vide Office memorandum No. FIN-CTI-TAX-0045-

2017/38535/F Dated 10^th December, 2018, which reads as under:

“Sub: Revised guidelines relating to works contract under

GST.

The guidelines regarding works contract under GST

was issued vide Finance Department letter No. FIN-CTI-

TAX-0045-2017- 36116/F dated 07.12.2017. Subsequently,

the National Rural Infrastructure Development Agency

(NRIDA), Ministry of Rural Development, Government of

India have issued guidelines for works contract on

implementation of Goods and Services Tax. Several

representations have 3 been received from the contractors

claiming additional amount towards GST in respect of the

works put to tender prior to 01.07.2017 but executed either

partly or wholly after 01.07.2017.

On careful consideration of the representation of the

contractors vis-à-vis existing guidelines issued in the

matter, Government have been pleased to issue following

revised guidelines in supersession of the guidelines issued

vide Finance Department letter dated 07.12.2017.

1. The Goods and Services Tax (GST) has come into

force w.e.f. 1^st July, 2017 by subsuming various indirect

taxes such as Excise Duty, VAT, CST, Entry Tax,

Service Tax etc. Works contract is treated as composite

supply of service under GST and are taxable @18%,

12% or 5% depending on the nature of works contract.

In order to comply the provisions of GST relating tow

works contract the State Government have revised the

Schedule of Rates – 2014 (SoR-2014) vide Works

Department OM No. 13827/WD dated 16.09.2017 w.e.f.

01.07.2017. While the item rates in the SOR-2014 were

inclusive of all taxes i.e. Excise Duty, VAT, Entry Tax,

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Service Tax etc., the same has been excluded in the

Revised

SoR-2014.

Therefore,

while

preparing

estimates for a work after 01.07.2017, the GST

exclusive work value is to be arrived at as per the

revised SoR-2014 and then GST will be added at the

appropriate rate.

2. In GST regime, the works contractor is required

to raise Tax Invoice clearly showing the taxable work

value and GST (CGST+SGST) separately.

3. In case of work, where the tender was invited

before 01.07.2017 on the basis of SoR-2014, but

payments made for balance work or full work after

implementation of GST, the following 4 procedure shall

be