Facts of the Case

The petitioner, M/s. B. H. Gangadharachar Contractor, a sole proprietorship registered under the GST Act, executed several works contracts for the Executive Engineer, H.R.B.C. Division, Holenarasipura (dated between November and December 2018) awarded prior to the GST rollout. Claiming entitlement to differential tax arising from the transition to the GST regime for payments made on or after 01.07.2017, the petitioner had submitted a representation dated 31.07.2023 seeking reimbursement of GST at 12% on each works contract/composite supply, relying on an earlier order of the same Court in W.P.No.9721/2019. Alleging inaction on this representation, the petitioner filed the present writ petition.

Issues Involved

  1. Whether the petitioner-contractor was entitled to a direction for reimbursement of differential GST at 12% under the works contracts executed straddling the GST transition.
  2. Whether, in the absence of supporting documents evidencing actual GST payment, the Court should direct payment outright or direct the authority to examine the claim.

Petitioner's Arguments

  • The petitioner was entitled to payment/reimbursement of differential tax under the GST regime for payments made on or after 01.07.2017 for works contracts executed prior to GST's introduction, relying on a co-ordinate Bench order in W.P.No.588/2025 (in turn relying on W.P.No.25764/2023), where similar directions for reimbursement of differential GST had been issued.

Respondent's Arguments

  • The petitioner had only produced a statement (Annexure-F) indicating the alleged GST payment, without supporting documents evidencing actual payment/deposit, and the authority was not in a position to examine the representation in the absence of such proof; on instructions, counsel submitted that if the petitioner furnished the necessary supporting documents, the claim would be examined and appropriate orders passed within 30 days.

Court Order / Findings

  • Recording the respondent's submission, the Court allowed the writ petition and directed the petitioner to furnish supporting documents evidencing payment of GST to the Executive Engineer within 15 days, and on receipt of such documents, directed the respondent to examine the claim and pass appropriate orders in accordance with law within 30 days thereafter.

Important Clarification

  • Contractors seeking reimbursement of differential GST for works contracts spanning the pre- and post-GST regime must substantiate their claim with documentary proof of actual GST payment/deposit; a bare statement without supporting documents does not entitle them to a direct payment order, but courts will direct the awarding authority to examine a properly substantiated claim within a fixed timeline.
  • Where a co-ordinate Bench has already directed reimbursement of differential GST in similar works-contract circumstances, subsequent petitioners are entitled to parity, subject to furnishing adequate supporting documentation.

Sections Involved

  • Goods and Services Tax Act, 2017 — governing the differential tax liability on works contracts/composite supplies that transitioned from the pre-GST to the GST regime with effect from 01.07.2017.

Decision – In Favour of

Allowed in favour of the Assessee/contractor, with a direction to the awarding authority to examine the reimbursement claim on supporting documents and decide within 30 days.

Case Details

Court: High Court of Karnataka at Bengaluru
Case No.: Writ Petition No.4285 of 2025 (GM-TEN)
Neutral Citation: 2026:KHC:14429
Coram: Hon'ble Mr. Justice Sachin Shankar Magadum
Date of Order: 10th March, 2026

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