Madras High Court Stays INR 80 Crore GST Demand on Hyundai Seconded Employees Salary

Interim stay has been granted by honourable Madras High Court to Hyundai Motor India Limited against the demand raised in the impugned Order, in relation to salaries paid to seconded employees. The GST authorities said that in the secondment arrangement, the company is deemed as the recipient of the service, and the services provided by the expatriate will be considered as a “supply of manpower” under GST laws.
In May, 2022 Honourable Supreme court in a historic judgement imposed service tax liability on Northern Operating Services Pvt Ltd on salary of seconded employees .The GST authorities started issuing orders to other companies demanding GST on seconded employees. However, GST liability will be decided case to case basis and all facts will be considered.