{"id":3243,"date":"2025-03-26T20:49:08","date_gmt":"2025-03-26T15:19:08","guid":{"rendered":"https:\/\/centaxblogs.taxmann.com\/?p=3243"},"modified":"2025-03-26T20:49:08","modified_gmt":"2025-03-26T15:19:08","slug":"government-entity-was-directed-to-pay-differential-amount-despite-pending-state-approval-as-gst-rate-increased-from-12-to-18-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/government-entity-was-directed-to-pay-differential-amount-despite-pending-state-approval-as-gst-rate-increased-from-12-to-18-hc","title":{"rendered":"Government Entity Was Directed to Pay Differential Amount, Despite Pending State Approval as GST Rate Increased From 12% to 18% |..."},"content":{"rendered":"<pre><strong>Case Details:<\/strong> <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000390558\/government-entity-was-directed-to-pay-differential-amount-despite-pending-state-approval-as-gst-rate-increased-from-12-to-18-hc\">SKB Projects India Pvt. Ltd. Versus State of Madhya Pradesh (2025) 28 Centax 152 (M.P.)<\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Sushrut Arvind Dharmadhikari<\/strong> &amp; <strong>Avanindra Kumar Singh<\/strong>, JJ.<\/li>\n<li><strong>Shri Akshay Khandelwal<\/strong>, Adv. for the Petitioner.<\/li>\n<li><strong>Shri Abhijit Awasthi<\/strong>, Deputy Adv. General for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The petitioner, a construction company, was awarded a contract for the construction and renovation of Government New Law College, Indore, pursuant to work orders issued by the respondent, a government entity classified as a \u2018Government Entity\u2019 under the GST Act, 2017. Subsequently, the rate of GST applicable to construction services was increased from 12% to 18% through a statutory notification. Notwithstanding this revision, the respondent continued to process payments at the earlier rate of 12%, whereas the petitioner remained obligated to discharge GST at the revised rate of 18%. Although the respondent formally acknowledged its liability to pay the additional 6% GST, it withheld the payment citing the pendency of requisite approval from the State Government. Aggrieved by this inaction, the petitioner instituted a writ petition seeking appropriate relief for the release of the differential GST amount.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The Hon\u2019ble High Court, relying on the precedent established in Writ Petition No. 39378 of 2024, held that the respondent was liable to discharge the differential 6% GST for the specified period, irrespective of the pending State Government approval. Accordingly, the Court directed the respondent to remit the differential amount within three months from the date of receipt of the certified copy of the order. Furthermore, in the event of non-compliance, the Court determined that the petitioner would be entitled to interest at the rate of 6% per annum from the date on which the entitlement arose. Consequently, the writ petition was disposed.<\/p>\n<h2><em>List of Notifications Cited<\/em><\/h2>\n<ul>\n<li>\n<div>Notification No.24\/2017 CT(R) dated 21.09.2017<\/div>\n<\/li>\n<li>\n<div>Notification No.15\/2021 CT(R) dated 18.11.2021<\/div>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: SKB Projects India Pvt. Ltd. Versus State of Madhya Pradesh&hellip;<\/p>\n","protected":false},"author":5,"featured_media":3248,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-3243","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Government Entity Was Directed to Pay Differential Amount, Despite Pending State Approval as GST Rate Increased From 12% to 18% | HC<\/title>\n<meta name=\"description\" content=\"High Court directs government entity to pay 6% differential GST to contractor despite pending state approval, affirming liability under revised GST rate.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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