W.P.(C ) No.9404 of 2020 2. 20.03.2020 Heard learned counsel for parties. By way of this writ petition, petitioner has challenged action of opposite parties in not reimbursing differential tax amount arising out of change in tax regime from Value Added Tax (VAT) to Goods and Service Tax (GST) with effect from 01.07.2017. Batch of writ petitions are being filed on this issue. main issue involved in such matters is that difficulty faced by contractors due to change in regime regarding works contract under GST. grievance of petitioner is that in view of introduction of GST, petitioner is required to pay tax which was not envisaged while entering into agreement. Learned Addl. Government Advocate submits that Government has now come out with revised guidelines in this respect in supersession of guidelines issued vide Finance Department letter dated 07.12.2017. He has filed Additional Counter Affidavit of O.P. No.2 in similar cases annexing revised guidelines relating to works contract under GST issued by Government of Odisha, Finance Department vide Office memorandum No. FIN-CTI-TAX-0045- 2017/38535/F Dated 10.12.2018, which reads as under: Sub: Revised guidelines relating to works contract under GST. guidelines regarding works contract under GST was issued vide Finance Department letter No.FINCTI-TAX-0045-2017-36116/F dated 07.12.2017. Subsequently, National Rural Infrastructure Development Agency (NRIDA), Ministry of Rural Development, Government of India have issued guidelines for works contract 2 on implementation of Goods and Services Tax. Several representations have been received from contractors claiming additional amount towards GST in respect of works put to tender prior to 01.07.2017 but executed either partly or wholly after 01.07.2017. On careful consideration of representation of contractors vis- -vis existing guidelines issued in matter, Government have been pleased to issue following revised guidelines in supersession of guidelines issued vide Finance Department letter dated 07.12.2017. 1. Goods and Services Tax (GST) has come into force w.e.f. 1st July, 2017 by subsuming various indirect taxes such as Excise Duty, VAT, CST, Entry Tax, Service Tax, etc. Works contract is treated as composite supply of service under GST and are taxable @18%, 12% or 5% depending on nature of works contract. In order to comply provisions of GST relating to works contract State Government have revised Schedule of Rates 2014 (SoR-2014) vide Works Department OM No.13827/WD dated 16.09.2017 w.e.f 01.07.2017. While item rates in SOR-2014 were inclusive of all taxes i.e. Excise Duty, VAT, Entry Tax, Service Tax etc., same has been excluded in Revised SoR-2014. Therefore, while preparing estimates for work after 01.07.2017, GST exclusive work value is to be arrived at as per revised SoR-2014 and then GST will be added at appropriate rate. 3 2. In GST regime, works contractor is required to raise Tax Invoice clearly showing taxable work value and GST (CGST +SGST) separately. 3. In case of work, where tender was invited before 01.07.2017 on basis of SoR-2014, but payments made for balance work or full work after implementation of GST, following procedure shall be followed to determine amount payable to works contractor; (i) Item-wise quantity of work done after 30.06.2017 (i.e. Balance Work) and its work value as per original agreement basing on pre-revised SoR- 2014 is to be ascertained first. (ii) revised estimated work value for Balance Work is to be determined as per Revised SoR-2014. (In case of rates of any goods or service used in execution of balance Work not covered in Revised SoR-2014, tax-exclusive basic value of that goods or service shall be determined by removing embedded tax incidences of VAT, Entry Tax, Excise Duty, Service Tax, etc. from estimated Price/Quoted Price.) (iii) revised estimated work value for Balance Work shall then be enhanced or reduced in same proportion as that of 4 tender premium/discount. (iv) Finally, applicable GST rate (5%, 12%, or 18% as case may be) is to be added on revised estimated work value for Balance Work to arrive at GST-inclusive work value for Balance Work. (v) model format for calculation of GST inclusive work value for Balance Work is attached as Annexure. competent authority responsible for making payment to works contractor will determine GST inclusive work value for Balance Work for which agreement executed on basis of SoR2014. (vi) supplementary agreement shall be signed with works contractor for revised GST inclusive work value for Balance Work as determined above. (vii) In case revised GST-inclusive work value for Balance Work is more than original agreement work value for Balance Work, works contractor is to be reimbursed for excess amount. (viii) In case revised GST-inclusive work value for Balance Work is less than original agreement work value for Balance Work, payment to works 5 contractor is to be reduced accordingly. In case excess payment has already been made to works contractor in pursuance of original agreement, excess amount paid must be recovered from works contractor. (ix) These procedures shall be applicable to all works contract including those executed in EPC/Turn-key/Lumpsum mode. 4. In case of F2 contracts, taxable value under GST for each item of balance work is to be determined by competent authority applying premium/discount offered by works contractor on respective item. Administrative Departments should issue suitable instructions to Competent Authority responsible for making payments to works contractors to implement this revised guidelines. In that view of matter, petitioner shall make comprehensive representation before appropriate authority within four weeks from today ventilating grievance. If such representation is filed, authority will consider and dispose of same, in light of aforesaid revised guidelines dated 10.12.2018 issued by Finance Department, Government of Odisha, as expeditiously as possible, preferably by 30.04.2020. 6 If petitioner(s) will be aggrieved by decision of authority, it will be open for petitioner(s) to challenge same. No coercive action shall be taken against petitioner till 30.04.2020. writ petition is disposed of accordingly. Urgent certified copy of this order be granted as per rules. . C.R. Dash, J. .. S.K. Panigrahi, J. subha Ajit Kumar Sahoo v. Executive Engineer, Pattamundai Canal Division/State of Odisha/The Commissioner CGST/Commissioner of CT and GST, Odhisha