GST on legal services — RCM basis -—– The petitioner challenged Notification No. 13/2017-CTR dated 28th June, 2017 as well as Notification No. 13/2017-State Tax (Rate) dated 30th June, 2017, which are per se in violation of the Act 2017 read with Article 279 A of the Constitution of India. The petitioner further challenged Notification No.5/2017-CTR dated 19th June, 2017 and challenged the constitutional validity of Section 9 (4) of Act. The petitioner submitted that mere clarification that all legal services are amenable to GST on reverse charge basis may not solve problem. A legal practitioner like himself who is already registered under the FA would have to be exempted from registration under the GST laws. The court observed that the central issue that requires to be addressed is whether the impugned Notification No.13/2017 dated 28th and 30th June, 2016 cover all legal services not restricted to representational services rendered by legal practitioners. The counsel for the respondent sought a short adjournment to take instructions. The court further observed that as on date there is no clarity on whether all legal services (not restricted to representational services) provided by legal practitioners and firms would be governed by the reverse charge mechanism.

Held that:- The Hon’ble High Court directed that no coercive action be taken against any lawyer or law firms for non-compliance with any legal requirement under the Act till a clarification is issued by the Central Government.