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Analysis on Supreme Court Judgment in Northern Operating Systems – Upholding RCM on Manpower Supply for Secondment Employee
Introduction:
On 19th May 2022, the Supreme Court delivered two judgments that shaken the foundations of indirect taxation. One in the matter of Mohit Minerals Private Limited[1], which struck down the levy of reverse charge on the importer for ocean freight services (for more on this, please read our article here[2]). Two, in the matter of Northern Operating Systems Private Limited[3], which upheld the revere charge on secondment of employees. Results of both the verdicts are opposite to the most popular public view, thus changing the way we look at the future of indirect taxation.
In this article, we wish to analyse the judgment of Supreme Court in the matter of Northern Operating Systems Private Limited (supra) and conclude with our remarks as to how the said judgment will impact the position under GST laws.