Pre-GST Services Not Subject to GST Merely Due to Post-GST Billing or Approval: Calcutta High Court Rules

Background and Overview

The Calcutta High Court, in the matter of Goutam Engineering Concern Vs West Bengal State Electricity Distribution Company Limited & Ors. (WPA 5150 of 2022), delivered a significant ruling on 14 September 2026, clarifying the boundaries of GST applicability in relation to services that were rendered and completed well before the GST regime came into operation. The central legal question before the Court was whether an assessee who had performed services entirely in the pre-GST era could be subjected to GST liability solely because post-facto approval was granted and invoices were raised after 1 July 2017.

The Court answered this question decisively in the negative, holding that the actual date of supply of services — and not the date of administrative approval or billing — determines the applicable tax regime.

Factual Background

Goutam Engineering Concern, provisionally enlisted as an erection contractor under the Distribution Wing of West Bengal State Electricity Distribution Company Limited (WBSEDCL), was engaged in deploying technical personnel for the repair and maintenance of electrical lines within its allotted working area in Hooghly.

The petitioner-company was entrusted by WBSEDCL with the specific work of "Deployment of Technical Personnel for Repair and Maintenance of feeder lines emanating from Belmuri 33/11 KV Sub-Station from 01.01.2015 to 31.12.2015 during the time span from 06:00 hours to 22:00 hours of the day under Tarakeswar (D) Division". The work was carried out pursuant to Office Orders dated 17.05.2013 issued by the Director (HR), WBSEDCL, as well as revised Office Orders dated 03.02.2015 and 06.08.2015.

The key chronological facts were:

  • Service Period: 1 January 2015 to 31 December 2015
  • Post-facto Approval: Granted by order dated 26 February 2018, which also detailed the amounts payable to the petitioner for the manpower deployed
  • Bills Submitted: Twelve monthly bills bearing Nos. GEC/B-77 to GEC/B-88, all dated 30.10.2018, were submitted by the petitioner on 22 February 2019
  • GST Regime Commencement: 1 July 2017

Despite having completed the assigned work, the petitioner was unable to receive payment. WBSEDCL withheld the amount on the ground that the petitioner had not complied with the statutory formalities under the West Bengal Goods and Services Tax Act, 2017, and that GST liability would arise on the amounts claimed.

An additional complication arose from a civil suit, being T.S. No. 494 of 2021, instituted by M/s. Aim Light against the petitioner before the competent Civil Court — in which the respondents were also impleaded — though no interim order restraining payment had been passed in that suit.

The petitioner, aggrieved by the withholding of payment, filed WPA 5150 of 2022 before the Calcutta High Court, seeking a writ of mandamus directing respondent no. 3 to release a sum of Rs. 19,91,148/- along with interest at the rate of 12% per annum from 22 September 2019 until actual payment.

Arguments Raised

Petitioner's Submissions

Counsel for the petitioner advanced the following contentions: