Contractor Entitled to Differential GST Reimbursement | HC

  • News|Blog|GST & Customs|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 29 June, 2026

Latest from Taxmann

Differential GST Reimbursement

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

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied