Contractors Are Liable To Pay GST At Rate Prevalent On Day Of Receipt Of Tender, Not When Work Is Allotted: J&K High Court

The Jammu & Kashmir and Ladakh High Court held that contractors are liable to pay GST at the rate prevalent on the date of receipt of the tender, not when the work is allotted. This ruling clarifies the point of taxation for works contracts under GST, linking it to the time when the contractual terms, including the applicable tax rate, are established through the acceptance of the tender.