The Karnataka High Court has ruled that contractors, whose projects fell between the VAT and GST regimes, need to pay the applicable tax rate prevalent during that regime, giving them a relief from having to pay a steep tax under the GST regime.
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The court also directed the government bodies that awarded the contract to bear the differential tax burden that arose after the GST regime kicked in on the grounds that taxes were not part of a contractor’s profit.
Read more at : THE ECONOMIC TIMES
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