Karnataka HC granted ad-interim stay on adjudication proceedings on levying IGST on secondment of manpower

Last updated: 01 October 2024

Quick Summary

The Karnataka High Court has temporarily halted adjudication proceedings concerning the levy of IGST on salaries paid to expatriate employees. The court noted that a recent GST circular might affect the case and directed the petitioner to first respond to the show cause notice. This decision comes amidst ongoing debate about whether secondment of employees constitutes taxable manpower supply services.

Court :
Karnataka High Court

Brief :
The Hon'ble Karnataka High Court in the case of M/s Alstom Transport India Ltd. v. State of Karnataka [Writ Petition No. 23915 of 2023 dated July 09, 2024] passed an ad-interim stay order on the adjudication proceedings seeking the levy of the Integrated Goods and Service Tax ("IGST") on the salaries paid directly to expatriates and held that that Circular No. 210/4/2024-GST dated June 26, 2024("the Circular") might have bearing on stand of Assessee insofar show cause notice ("SCN") is concerned. Therefore, without getting into merits of matter, the Assessee was to be relegated to stage of reply to SCN and authorities concerned could take note of applicability of Circular to facts on hand.

Citation :
Writ Petition No. 23915 of 2023 dated July 09, 2024

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