1. The contract for civil construction work was entered into between the owner company (A PSU) and the Contractor - A Company during the Service tax regime in the year 2006. The Contract was inclusive of all taxes & duties and the Contractor (A company) had quoted their bid the rates including taxes.
2. The construction work was completed in the year 2015 and the assets were taken over by the Owner Company ( A PSU) in 2014 -15.
3. Disputes arose during construction on certain claims of the contractor regarding the work done such as extra work, Extra cost on deployment of machineries, Rate Variation and non release of security/retention money etc.
4. As per Contract Terms, disputes were filed before the Arbitral Tribunal .
5. Recently in the GST period , now the Arbitral Tribunal (AT) has awarded certain claims partially in favour of the contractor including the release of the retained security amount .
6 AT has also awarded interest on security amounts till the date of award. and also interest on the claims awarded for works in favour of the Contractor.
Kindly clarify whether GST is payable on AT award for works & Interest amount even when the works were awarded & completed before the introduction of GST.
The invoices were also raised before the GST period in 2015.
There is an Advance Ruling on the issue from Telangana State AAR No. 13/2021. Go through and you will get clarity on the issue.
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