Ms Jai Parkash Garg Contractor vs. State Of Haryana, Through Its Additional Chief Secretary, Department Of Local Government

Facts

The petitioner, M/s Jai Parkash Garg Contractor, a government contractor, filed a writ petition seeking directions to the respondents (State of Haryana and others) to reimburse Goods and Service Tax (GST) at 18% on works executed, instead of the 12% applied. The petitioner was awarded a work based on a Notice Inviting Tender issued on 29.09.2023. The petitioner claims it has been paid GST at 12% and its grievance regarding non-reimbursement of GST at 18% was met with a response that the tender was based on old Haryana Schedule of Rates (HRS) where GST was included. The petitioner sent a legal notice dated 25.03.2026, which remained unaddressed.

Held

The Court disposed of the petition based on the statement made by the learned State counsel. The Court directed that the competent authority would examine the entitlement of the petitioner to reimbursement of GST at 18% or 12%. If it is found that the petitioner is entitled to GST at 18%, then the differential amount shall be released in its favour. The Court did not make a definitive finding on the entitlement to 18% GST but mandated an examination by the competent authority. The issue of deciding the legal notice was implicitly covered by the direction for examination.

Key Issues

1. Whether the petitioner is entitled to reimbursement of GST at 18% on works executed, as opposed to 12% applied by the respondents, in light of policy instructions and notifications dated 01.02.2023 and letters dated 14.02.2023 and 12.10.2023 issued by the Finance Department, Government of Haryana? (Question of law) Petitioner's Contention: The petitioner argued that it is entitled to reimbursement of GST at 18% based on the aforementioned policy instructions and notifications. It sought directions for the respondents to reimburse the differential amount and to decide its legal notice dated 25.03.2026. Respondents' Contention: The learned State counsel submitted that the competent authority would examine whether the petitioner is entitled to reimbursement of GST at 18% or 12%. The respondents' earlier response indicated that the tender was based on old Haryana Schedule of Rates (HRS) and GST was included in those rates.