In a significant judicial move, the Andhra Pradesh High Court has set aside an adjudication order that imposed 18% Goods and Services Tax (GST) on public road works. The court’s decision mandates a fresh assessment based on certificates issued by the Executive Officer of the Industrial Area Local Authority (IALA).
The petitioner in question, RK Infracorp Private Limited, is a registered dealer under the GST Act and is engaged in various infrastructure projects across the state. The court’s order comes as a relief for RK Infracorp, potentially clarifying the tax implications of public road works undertaken by registered dealers.
However, the reasons behind the court’s decision to set aside the original adjudication order were not specified in the report. It remains unclear why the court believes a fresh assessment is necessary. Furthermore, the nature or extent of public road works that RK Infracorp was undertaking has yet to be revealed.
As the situation develops, it will be crucial to monitor any further updates concerning the GST implications for public road works and their impact on dealers like RK Infra Corp Private Limited. This decision by the Andhra Pradesh High Court could have far-reaching consequences for infrastructure projects in the region.
