Master Servant Relationship still matters

In the Alstom Transport case, the Karnataka High Court ruled that secondment of employees from foreign affiliates is not considered a taxable supply under GST. This decision is based on the employer-employee relationship outlined in Schedule III, exempting it from reverse charge. Referencing CBIC Circular 210/4/2024, the Court highlighted that these services are deemed "nil-valued" in the absence of an invoice. J the App by JustIDT is delighted to share the snaphsot of the judgment that provides a significant reprieve for multinational companies, establishing a robust stance against GST obligations related to secondment.