HC: No liability to pay CGST/SGST if IGST was duly paid on supply of goods to common carrier for delivery to recipient{Toyota Kirloskar Motor (P.) Ltd. vs. Union of India
[2025] 181 taxmann.com 691 (Karnataka HC)}
Facts:
- Toyota supplied goods and handed them over to a common carrier for delivery to customers located in other States.
- Treating the transaction as an inter-State supply, Toyota paid IGST.
- The GST department later alleged that the place of supply was within Karnataka (at the time goods were handed over to the transporter) and therefore demanded CGST + SGST, despite IGST having already been paid.
Issue:
- Whether CGST and SGST can be demanded when IGST has already been duly paid on supply of goods to a common carrier for delivery to the recipient.
Held:
- The High Court held that once IGST is correctly paid, the department cannot demand CGST and SGST again on the same transaction.
- Delivery of goods to a common carrier for onward delivery to the recipient amounts to supply to the recipient.
- Double taxation is not permissible under GST law.
- Hence, no liability to pay CGST/SGST arises when IGST has been duly paid.
