A Writ petition has been filed before the Gujarat High Court challenging the vires of the Section 17(2) and 17(3) of the Central Goods and Services Tax Act, 2017 & The Gujarat (State) Goods and Services Tax Act, 2017 regarding the levy of Goods and Services Tax ( GST ) on Advocates stating that the lavy violates Article 14, 19, 21 & 265 of the Constitution of India.
While admitting the petition on the files, the Gujarat High Court issued notices to Centre, State and GST Council on Monday.
The petition filed by Advocate Nipun Singhvi, a qualified Chartered Accountant and a financial activist challenged the provisions being violative as it restricts the credit of the input tax credit on goods / services or both used by Advocates for effecting taxable legal services and exempt legal services.
The Counsel for the petitioner Advocate Vishal J. Dave submitted “That the tax to be paid by the litigant on taxable legal services in the absence of provision for availment of input tax credit by advocates is leading to the effect of cascading of taxes since the tax component in the form of taxes on goods and services or both used by advocates including petitioner for providing the said taxable legal services becomes part of the cost of the advocates, which is passed on to the clients by way of professional fee on which again GST is chargeable.”
The petitioner prayed for introducing mechanism for availing input tax credit on the expenses done with respect to goods and services availed by the advocates.
The petitioner has been actively filing public interest litigation/writs significant among them are Demonetisation, Tribunals under Finance Act, 2017; GST provisions relating to AAR/AAAR and Appointment of Technical Member in NCLT.
Next date of hearing is fixed on 21.06.2018.
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