Allahabad High Court Dismisses PIL Against 18% GST On Online Legal Research Services

The Allahabad High Court on Monday dismissed a PIL challenging the levy of 18% Goods and Services Tax (GST) on online legal research and legal educational data-based services, questioning why the petitioner had waited until 2026 to challenge a tax rate that had been in place since 2017.

A Division Bench of Chief Justice Arun Bhansali and Justice Kshitij Shailendra observed that the advocate had not explained what had suddenly prompted him to question the tax rate.

“The petitioner, an Advocate, has nowhere in the petition even indicated as to what suddenly has been the cause for the petitioner to become aware of the rate being higher despite the fact that the rate continues to exist since the year 2017,” the court observed.

The petitioner challenged the 2017 notifications concerning the taxation of online legal research and legal educational data-based services at an aggregate rate of 18%, without a separate classification or concessional rate.

He argued that lawyers need online legal research tools to verify the authenticity of judgments before citing them in court. He submitted that citing an overruled or fake judgment amounts to professional misconduct. Charging 18% GST on these services was unreasonable, he contended, because they were not a luxury.

The court noted that the petitioner was enrolled as an advocate in 2020 and claimed to have been practising for six years. It observed that he had not explained his sudden awareness of the tax rate, which had been in place since 2017.

“The petitioner was enrolled in the year 2020 and claims to continue practising for last six years and, therefore, the sudden awareness about the tax being unreasonable and filing of the PIL at the instance of the said petitioner, cannot be countenance. The petition is, therefore, dismissed,” the court ruled

For Petitioner: Advocate Shivam Shukla appeared

For Respondents: ASGI, B.K. Singh Raghuvanshi, A.K. Goyal, Dhananjay Awasthi and Sudarshan Singh.