THE COMMISSIONER OF CENTRAL TAX & ORS. v. M/s SADGURU INFRATECH PVT LTD dated 10.06.2026

Analytical Video :

Introduction

The present writ appeal arose from a common judgment passed by the Single Judge in a batch of writ petitions filed by various contractors and sub-contractors executing Government works contracts that had been awarded prior to the implementation of GST but continued after 1 July 2017, when the Goods and Services Tax regime came into force.

The principal grievance of the contractors was that their contracts had been finalized under the erstwhile VAT regime, where the quoted contract price did not contemplate the incidence of GST. With the introduction of GST, the contractors became liable to discharge GST on the supplies made under the ongoing contracts, thereby suffering an additional tax burden which was never factored into the original contractual consideration.