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

11/02/2026

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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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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

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