Karnataka HC says GST Cannot Be Levied on Compulsory Acquisition of Immovable Property

The Karnataka High Court ruled that compulsory acquisition of land and buildings is an exercise of statutory power, not a supply of goods or services attracting GST. It ordered repayment of the GST deducted from compensation, with interest at 15% per annum and costs of ₹50,000, holding the deduction to be beyond the authorities’ powers.