HC Orders Segregation of Pre- and Post-GST Works for Correct Tax Application

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  • Last Updated on 15 November, 2025

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segregation of pre and post-GST works

Case Details: Mycon Construction Ltd. vs. State of Karnataka - [2025] 180 taxmann.com 352 (Karnataka)

Judiciary and Counsel Details

  • M. Nagaprasanna, J.
  • D.R. Ravishankar, Ld. Sr. Counsel & Naveen G.S., Adv. for the Petitioner.
  • M. Rajakumar, Learned AGA & Dakshina Murthy, Adv. for the Respondent.

Facts of the Case

The petitioner, engaged in executing works contracts for construction projects. It was contended that certain works contracts executed by it spanned both pre-GST and post-GST periods. It was argued that post-GST agreements incorrectly applied pre-GST service tax, leading to a miscalculation of tax liability. Segregation of pre-GST and post-GST works, adjustment of Karnataka Value Added Tax (KVAT)/service tax for pre-GST works, application of GST with ITC offset for post-GST works, and reimbursement of differential tax for pre-GST works paid were sought after the implementation of GST. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the petitioner was entitled to get relief by segregating pre-GST works from post-GST works. The Court directed that payments for pre-GST works were to be identified, and KVAT/service tax applicable thereon was to be deducted, while GST was to be applied to post-GST works with ITC offset against output GST. The Court further held that a supplementary agreement was required to document the differential computation and directed reimbursement of the differential tax for pre-GST works that were paid after the implementation of GST.

List of Cases Reviewed

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