Case Details: Er. Roland S. Fernandes vs. Government of Karnataka [2026] 187 taxmann.com 979 (Karnataka)
Judiciary and Counsel Details
- Sachin Shankar Magadum, J
- Smt. Vidyashri N. Mulimani, Adv. for the Petitioner.
- Sharad V. Magadum, AGA for the Respondent.
Facts of the Case
The petitioner, a Class-I registered civil contractor, was awarded a works contract for the repair and renovation of a government building. During the execution of the contract, the GST regime was introduced with effect from 01.07.2017, replacing VAT and resulting in an additional tax liability. After paying the differential GST, the petitioner sought reimbursement of the additional tax amount from the State authorities, but no action was taken on his representation. Consequently, the petitioner filed a writ petition seeking reimbursement of the differential GST with interest.
High Court Held
The High Court held that the issue was no longer res integra and that the recipient of the works contract services is liable to bear the differential GST arising from the transition from VAT to GST. Since the petitioner had already discharged the differential GST liability, he acquired a legal right to seek reimbursement. Accordingly, the Court directed the respondents to determine and reimburse the differential GST attributable to the introduction of GST within the prescribed period
List of Cases Referred to
- M.G. Arunkumar v. State of Karnataka [2024] 165 taxmann.com 302 (Kar) (para 4)
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