High Court denied to issue direction to delete the requirement of submitting GST Registration Certificate for tender allotment, even if the goods, to be supplied, are not subjected to GST.

Facts of Case

The Petitioner has filed this petition questioning the rejection of its bid pursuant to the short tender call notice issued by Opposite Party for supply of medical books and medical journals for the Central Library of Opposite Party.

One of the tender conditions, which the Petitioner has not been able to fulfil, is the furnishing of the Petitioner’s GST registration. This requirement is explicitly spelt out in the terms and conditions attached to the notice inviting tender (NIT).

The ground on which the Petitioner questions the above requirement is that it is a non-essential condition since under the Orissa Goods and Services Tax Act (OGST Act), no GST is payable on printed books.

Argument by Respondent

However, as pointed out by Mr. P.K.Muduli, learned A.G.A. appearing for the Opposite Parties, under Section 22 of the OGST Act any supplier, making a taxable supply of books or services, shall be liable to be registered. This, according to him, has to be read with Section 7 of the OGST Act. In other words, the submission is that while the goods themselves may or may not be taxable, the requirement of the registration is mandatory under the OGST Act.

Held by High Court

There is merit in the contention of Mr. Muduli that the issue of a particular product not being amenable to GST is very different from the requirement of a supplier of goods having to get a valid GST registration. As pointed out, it is quite possible that in future the goods that are presently exempt from GST, may be amenable to it.

In the circumstances, the Court is not persuaded that any direction should be issued to Opposite Party to delete the above requirement as one of the essential conditions to be fulfilled by the bidders.

The writ petition is accordingly dismissed.

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