HP HC says contractor GST bill cannot be held for lack of funds
In short
The Himachal Pradesh High Court said a government contractor’s GST bill cannot be held back just because the government says it has no funds. The court ruled that payment must be released for work already done.
This supports contractors who are waiting for dues on completed government work.
What the reporting says
The Himachal Pradesh High Court ruled that a government contractor’s GST-inclusive work bill cannot be withheld for want of funds. The court said non-availability of funds cannot justify delaying payment for work already executed, and that the State is obliged to release dues. The order strengthens contractors’ claims for payment under completed public works.
Why it matters
The Himachal Pradesh High Court held that a government contractor’s GST-inclusive bill cannot be withheld simply because funds are unavailable. The ruling says the State must pay for work already executed. That decision is important for contractors doing public projects, since it reinforces payment obligations on government bodies.