Employer–Employee Relationship Outside GST Net: Karnataka HC Quashes IGST Demand on Salaries Paid to Expat Employees

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Employer–Employee Relationship Outside GST Net: Karnataka HC Quashes IGST Demand on Salaries Paid to Expat Employees

GST

Published on

11/02/2026

By Juris Hour Team

Employer–Employee Relationship Outside GST Net: Karnataka HC Quashes IGST Demand on Salaries Paid to Expat Employees

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The Karnataka High Court has set aside a show cause notice proposing to levy Integrated Goods and Services Tax (IGST) of over Rs. 85.51 crore on salaries paid to foreign national employees, holding that such payments arise from a genuine employer–employee relationship and are not liable to GST. The bench of Justice S.R. Krishna Kumar,…

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Juris Hour Team

Juris Hour is an online news portal for reporting accurate and honest news, articles, judgments, Circulars, orders and notifications related to legal developments. We use the tagline ‘Proficiency At Your Doorstep’. Our mission is to simplify and communicate various legal developments in various spheres like civil, criminal, taxation, etc. and make people aware of their rights and duties in order to empower them to contribute in nation-building.Juris Hour is a team of young professionals turned legal journalists who are guided by the values enshrined in the Preamble of the Constitution of India and want to create more legal awareness in society by acting as a tool to aid legal reforms by offering a space for constructive criticism of the judiciary.

Employer–Employee Relationship Outside GST Net: Karnataka HC Quashes IGST Demand on Salaries Paid to Expat Employees

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