Summary
- The GSTAT Lucknow has dismissed Torrent Gas Limited's appeal for a ₹7,264 refund on GST paid under the reverse charge mechanism for road restoration charges to the Public Works Department, Uttar Pradesh.
- The Tribunal ruled that these charges constituted a taxable supply of service, rejecting arguments that they were merely compensatory damages or exempt under constitutional provisions.
- It emphasized that the transaction was a planned administrative arrangement rather than a sovereign function, thus falling within the tax net.
- This decision reinforces the tax liability of businesses engaging in infrastructure projects, clarifying the boundaries of GST exemptions in similar contexts.
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