Case Law Details
Devi Prasad Tripathy Vs. Principal Commissioner CGST and Central Excise (Orissa High Court)
High Court expresses its concern that practising advocates should not have to face harassment on account of the Department issuing notices calling upon them to pay service tax/GST when they are exempted from doing so, and in the process also having to prove they are practising advocates. The Commissioner GST is directed to issue clear instructions to all the officers in the GST Commissionerates in Odisha that no notice demanding payment of service tax/GST will be issued to lawyers rendering legal services and falling in the negative list, as far as GST regime is concerned. Copies of such instructions be placed before the Court on the next date.
Read Final Order in this Case: Orissa HC Quashes Service Tax Notices issued to Lawyers
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
1. The Counter affidavit sworn to by the Principal Commissioner, GST and Central Excise, Bhubaneswar Commissionerate on behalf of Opposite Party Nos.1 to 7 is produced in Court today, which is taken on record.
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The recipient of the service has to pay GST to the service provider. Even if the practising advocates were to pay GST, it’s the recipient (s)/ clients if that advocate has to bear that tax portion in addition to the lawyer’s fee. By exempting GST to the practising advocates, the client is benefitted.
Why advocates alone ? Why other professionals can not be exempted if service done to individuals other than corporates or business houses.?
Why are advocates exempt from GST, is it because most politicians are advocates. Supreme court lawyers who charge 25 lks per hearing don’t pay GST ! What an injustice ? Non corporates and individuals don’t even pay on reverse cash basis.
It’s time this rule is changed.