A bench of Justices S Muralidhar and Pratibha M Singh, while issuing notices to the central and Delhi governments, said no coercive steps should be taken against lawyers or law firms who have not yet been registered under the Goods and Services Tax (GST) law.
The court said this interim order would be applicable till the two governments clarified whether the advocates have to pay GST on all legal services, except for representing its clients in courts and tribunals.
The bench was hearing a plea filed by lawyer J K Mittal seeking quashing of the notifications issued by the Centre and the Delhi government as per which GST will be paid by advocates and law firms on all services offered by them, except representing their clients in courts.
For representational services, the recipient of the service -- clients or litigants -- will have to pay GST as per the notifications, the petition has said.
The petition also alleged that the Council had recommended that lawyers or law firms should be exempt from registration under the central and state GST laws, which has also not been followed by the two governments.