GST
GST
From To
Sri B.Raghu Rami Reddy, B.E., The Govt., Pleader for WRD,
Executive Engineer, W.R.D., High Court of A.P ,Nelapadu
M.I Works Division, Nandyal. Amaravati, Guntur Dist.
Ref: 1. Writ Petition No.16933 of 2024 filed by M/s Dereddy Ayyapureddy, Proprietor Sri
D.Ayyapureddy, S/o Late Siva Reddy, Koratamadi(V), Gadivemula (M), Nandyal
District in Honble High Court of A.P
*****
I submit that the de-silting and jungle clearance of Neeru-Chettu works were executed by
M/s Dereddy Ayyapureddy, Proprietor Sri D.Ayyapureddy, S/o Late Siva Reddy, Koratamadi(V),
Gadivemula (M), Nandyal District in M.I Works Division, Nandyal and the works are involved major
portion more than 75% of work of the earth work excavation. The GST @ 5% was added bill and recovered
in the bill. The remaining information is pertains to Assistant Commissioner (ST), Nandyal II Circle,
D.No.29/178-31B, Old Gautam Model School Building, Nandyal, Nandyal District.
At the time of concluding agreement A.P value added tax (VAT) Act 2005 was in force
accordingly the L.S provision for VAT @ 5% was made in the estimate.
The Government in G.O.Ms.No.58 Finance (WR-I) Department Dt: 08-05-2018 has issued
orders on implementation Goods & Service Tax (GST) in works Contract as mentioned below:
a) Since the SOR relates to the year 2017-18 and the GST was introduced with effect from 01-07-2017
reducing the unit costs of all the materials as well as hire charges, by the subsumed taxes embedded
therein. The rate of GST fixed @ 18% (9% CGST & 9% SGST) for the work contracts from
01-07-2017 to 21-08-2017 and GST @ 12% (6% CGST & 6% SGST) from 22-08-2017 with input
tax credit.
b) With effect from 13-10-2017 the works contract involving predominantly earth work (i.e.,
Consisting more than 75% of the value of the work) attract 5% GST with input tax credit.
c) Regarding contracts concluded prior to or after 01-07-2017 with the 2016-17 prior SSR rates
(wherein tax element is concluded).
(i) Revised estimates have to be approved separately duly splitting the works executed prior to 01-07-
2017 and the work done after 01-07-2017 with GST provision as applicable with the basic rates of
sanctioned estimates SOR.
(ii) Supplemental agreements are to be concluded with the arrived unit rates (excluding tax element) for
the work executed on or after 01-07-2017 with GST provision as applicable has to be added to the
bill amount.
(iii) Payments are to be allowed duly adjusting the already made payments in the intermediate bills.
As the last measurement date of the work is prior to the GST effective date, no CGST, SGST
was recovered.
The present writ petition is not maintainable in law or on facts there is no public law element
is involved in this case. The petitioner approached this Honble Court under Article 226 is not maintainable
as there are disputes regarding the alleged payment and where terms and conditions imposed in the
agreement of the contract, the appropriate remedy available to the petitioner. Clause 23 of the agreement, if
any disputes or difference of any kind whatsoever shall arise between the department and the contractor in
connection with, or arising out of the contract of the execution of works, whether during the progress of the
works or after their completion and whether before or after the termination, abandonment or breach of the
contract, be referred and settled by the contractor has to approach competent civil court according to clause
3(ii)1 for adjudication of its disputes. The petitioner has also given a declaration in the agreement that it will
abide for settlement of disputes as per the terms of the agreement. Hence the present writ petition is not
maintainable and the petitioner has to approach the competent civil court only.
Yours faithfully.
Copy submitted to the Superintending Engineer, Irrigation Circle, Kurnool for favour of information.