Karnataka High Court Clarifies GST Reimbursement Liability Lies With Employer, Not Tax Authorities, and Bars Statutory Waivers by Contract
The Karnataka High Court has held that the liability to reimburse incremental GST arising from contractual works is strictly between the contractor and the employer, and cannot alter statutory GST obligations. The Court set aside directions permitting waiver of interest, penalty, or limitation for GST returns, emphasizing that statutory requirements cannot be overridden by contract or judicial directions.
