IGST Not Payable on Salaries to Foreign Employees: Karnataka HC

Huawei Technologies India Private Limited Vs State of Karnataka (Karnataka High Court) The Karnataka High Court allowed the writ petition challenging a show cause notice dated 23.12.2023 demanding IGST of ₹85,51,00,620/- along with interest and penalty on salaries paid to foreign national employees for the period April 2018 to March 2023. The demand was raised on the ground that the remuneration constituted consideration for “import of Manpower Recruitment and Supply Service” under the Reverse Charge Mechanism (RCM), treating the foreign employees as non-resident taxable persons. The pet...