G Ananth Kumar vs. The Deputy Commissioner
Held
The High Court held that the acquisition of immovable property by the State under its power of eminent domain is not a 'supply of goods or services' and therefore, GST cannot be levied or deducted from the compensation. The deduction of GST was quashed, and a refund with interest and costs was ordered.
Facts
The petitioner's land and structures were compulsorily acquired for a highway project, and 18% GST amounting to Rs. 2,50,001.22/- was deducted from the compensation. The petitioner challenged this deduction, arguing that land acquisition does not constitute a 'supply of goods or services' under the GST Act.
Key Issues
Whether the compulsory acquisition of land and structures by the government for public purposes constitutes a 'supply of goods or services' liable for GST under the Central Goods and Service Tax Act, 2017.
Sections Cited
Central Goods and Service Tax Act, 2017, Article 366(12A)
AI-generated summary — verify with the full judgment below
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HC-KAR
CNR: KAHC010554212026 NC: 2026:KHC:45178 WP No. 25419 of 2026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF AUGUST, 2026 BEFORE THE HON'BLE MR. JUSTICE R. NATARAJ WRIT PETITION NO. 25419 OF 2026 (LA-RES) BETWEEN:
G. ANANTH KUMAR S/O H. GUNDAPPA AGED ABOUT 55 YEARS, NO.357, 17TH MAIN, B BLOCK VIJAYANAGAR 3RD STAGE MYSORE-570030 …PETITIONER (BY SRI. NARENDRA GOWDA, ADVOCATE) AND:
THE DEPUTY COMMISSIONER MYSORE DISTRICT, MYSORE -570030
THE SPECIAL LAND ACQUISITION OFFICER AND COMPETANT AUTHORITY, NATIONAL HIGHWAY 275 (MYSORE - MADIKERE DIVISION), NO.984, 1ST FLOOR, GEETHA ROAD CHAMARAJPURAM, MYSORE-570005
NATIONAL HIGHWAY AUTHORITY OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS GOVT. OF INDIA, REGIONAL OFFICE, BESIDE NAGASANDRA METRO STATION BANGALORE-560073 REP. BY ITS DEPUTY GENERAL MANAGER
PROJECT DIRECTOR NATIONAL HIGHWAY AUTHORITY OF INDIA HEMALATHA J Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC010554212026 NC: 2026
The judgment continues below.
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