Karnataka High Court stays retro tax call on annuity to infra companies

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The Karnataka High Court has stayed proceedings initiated by the goods and services tax (GST) authorities seeking retrospective payment of tax on annuity to infrastructure companies.

The high court, on December 23, stayed the proceedings initiated after summons were issued by the authorities as well as the circular issued by the Central Board of Indirect Taxes and Customs (CBIC) in June clarifying that GST was leviable on annuity payments.

The high court’s decision came in response to a writ petition filed by DPJ Bidar Chincholi (Annuity) Road Project Pvt Ltd.

A host of summons have been issued by the GST authorities since the issuance of clarification after the GST Council decided to exempt toll payments from GST.

Source from: https://economictimes.indiatimes.com/news/economy/policy/karnataka-high-court-stays-retro-tax-call-on-annuity-to-infra-companies/articleshow/88510322.cms