Delhi HC seeks a clarification from the Centre and states on whether all services provided by legal practitioners and firms will be governed by the reverse charge mechanism under the GST regime
New Delhi: The Delhi high court on Thursday sought a clarification from the central and state governments on whether all legal services provided by legal practitioners and firms will be governed by the reverse charge mechanism under the goods and services tax (GST) regime.
The reverse charge mechanism puts the onus for payment of tax on the recipient of services, as opposed to the supplier.
“If in fact all legal services are to be governed by the reverse charge mechanism, then there would be no purpose in requiring legal practitioners and law firms to compulsorily get registered under the Central Goods and Services Tax (CGST), Integrated Goods and Services Tax (IGST) and/or Delhi Goods and Services Tax (DGST) Acts," the court observed.
The court’s order was in response to a petition filed by one J.K.Mittal, challenging the constitutional validity of notifications issued by the central and Delhi governments.