Govt Directed to Consider GST Rate Difference Claim | HC

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disbursement of GST rate difference

Case Details: Kanthan Associates vs. State of Tamil Nadu - [2025] 181 taxmann.com 722 (Madras)

Judiciary and Counsel Details

  • N. Sathish Kumar, J.
  • Shrivirudishni V. for the Petitioner.
  • V. Jeevagiridharan, Additional Government Pleader & D. Veerasekaran, Standing Counsel for the Respondent.

Facts of the Case

The petitioner was engaged in construction activities and participated in a competitive bid issued by the Tamil Nadu Housing Board (TNHB) for the construction of a commercial complex. It was awarded the work contracts, and in the payment certifications issued by TNHB, GST was initially applied at a reduced rate of 12% instead of the statutory rate of 18%. It was submitted that this discrepancy resulted in an underpayment of GST amounting to 6% for all work rendered and requested that TNHB disburse the difference, along with applicable interest and penalties that the GST Authority might levy. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that TNHB was to consider the representations and pass appropriate orders in accordance with law. It was observed that the statutory provisions under Section 14 of the CGST Act and the Tamil Nadu GST Act, entitled the petitioner to receive the difference of 6% GST along with applicable interest and penalties that might be levied by the GST Authority due to the discrepancy in rates. Accordingly, the Court directed TNHB to consider the petitioner’s claims and disburse the outstanding GST amount in line with statutory provisions.

List of Cases Referred to

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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