2017 (9) TMI 1165 - HC - GST

GST on legal services - Issuance of two fresh Notifications by Central Government by way of corrigendum - N/N. 8 and 13/2017 Central Tax (Rate) dated 28th June, 2017 - legal services being taxable on reverse charge basis - the Govt. of NCT of Delhi has also to issue a notification on the same lines by way of corrigendum to N/N. 13/2017-State Tax (Rate) dated 30th June, 2017 - Held that - The issue concerning exemption of lawyers from registration under Section 23 (2) of the CGST Act; the position concerning those lawyers whose registration under the Finance Act 1994 has migrated to the CGST Act in terms of Section 22(2) thereof and other issues raised in these petitions will be taken up for consideration on the next date.

Summary

Issues:
1. Fresh notifications to be issued by Central Government and Govt. of NCT of Delhi regarding legal services being taxable on reverse charge basis.
2. Exemption of lawyers from registration under Section 23(2) of the CGST Act.
3. Position of lawyers whose registration under Finance Act 1994 has 'migrated' to the CGST Act.
4. Other issues raised in the petitions.

Analysis:

1. The High Court noted that the Central Government, represented by the Additional Solicitor General, will issue two fresh notifications aligning with the decision of the GST Council on legal services being taxable on reverse charge basis. These notifications are to be produced before the Court on the next hearing date. Consequently, the Government of NCT of Delhi is directed to issue a corrigendum notification in line with the Central Government's actions. This development signifies a move towards ensuring consistency with the GST Council's decisions on taxation matters.

2. The Court highlighted the issue of exemption of lawyers from registration under Section 23(2) of the CGST Act. This specific matter, along with related concerns such as the status of lawyers whose registration under the Finance Act 1994 has transitioned to the CGST Act under Section 22(2), will be deliberated upon in the upcoming hearings. The Court's decision to address these issues indicates a comprehensive examination of the legal framework governing the registration and taxation aspects applicable to lawyers under the GST regime.

3. Furthermore, the Court scheduled a future hearing on 26th September 2017 to continue the proceedings and delve deeper into the issues raised in the petitions. This step underscores the Court's commitment to thoroughly review and analyze all aspects related to the taxation and registration requirements concerning lawyers under the CGST Act. The listing for further hearing signifies the Court's dedication to ensuring a comprehensive and detailed examination of the legal complexities involved in the present case.

In conclusion, the judgment by the Delhi High Court reflects a proactive approach in addressing the complexities surrounding the taxation and registration of lawyers under the CGST Act. By directing the issuance of fresh notifications and scheduling further hearings to consider the pertinent issues raised, the Court demonstrates a meticulous and thorough examination of the legal matters at hand, aiming to provide clarity and consistency in the application of tax laws to legal services.