GST Not Applicable on Commission Paid to Employees: Karnataka HC

When Commission Becomes Salary: Analysing the Karnataka High Court’s Landmark Ruling on Pigmy Agents and GST Liability In Karnataka Vikas Grameena Bank Vs Deputy Commissioner of Commercial Taxes, the Karnataka High Court examined whether GST is payable under reverse charge on commission paid to pigmy agents. The tax department treated such agents as business facilitators, triggering GST liability under Section 9(3) of the Central Goods and Services Tax Act, 2017. However, the Court focused on the true nature of the relationship and held that pigmy agents function as employees, not indepe...