The Kerala High Court recently issued notice on a plea moved by the Kerala High Court Advocates' Association (KHCAA) challenging the Goods and Services Tax (GST) levied on the goods and services provided by the Association to its own members.
Justice Bechu Kurian Thomas observed while admitting the plea that the case merits admission. The Court issued the order on a petition filed by the KHCAA contending that it is not liable to pay tax under the Kerala State Goods and Services Tax and the Central Goods and Services Tax Act, 2017 (CGST) for goods and services provided by it to its own members.
KHCAA is involved in charitable activities and the Income Tax Department has issued Registration under Section 12AA of the Income Tax Act, in favour of the Association. It is thus exempt from payment of income tax.
The Court opined that the petitioners raised a prima facie case for consideration and ordered that the petitioners shall be free to file the returns contemplated under the CGST and KSCGST Acts in accordance with law, subject to the contentions raised in the present writ petition.