Secondment arrangement does not give rise to any tax liability: Karnataka HC sets aside IGST Demand

The Karnataka High Court has set aside an "IGST (Integrated Goods and Services Tax) demand," ruling that a "secondment arrangement does not give rise to any tax liability." A secondment arrangement involves an employee of one company being temporarily transferred to another. The court likely held that such arrangements, typically for specific projects or knowledge transfer, do not constitute a supply of manpower service liable to GST, particularly if the seconded employee remains on the original employer's payroll and under their overall control. This provides significant clarity for companies with international secondment policies.