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Advocates Acting As Insolvency Professionals Do Not Need BCI Enrolment Suspension But Must Pay GST Under Forward Charge Rule: Delhi High Court

The Delhi High Court has clarified that lawyers who register and work as insolvency professionals under the bankruptcy code are not required to suspend their Bar Council enrolment. However, when functioning in this capacity, they cannot claim tax benefits reserved for standard legal practice. The court ruled that lawyers acting as resolution experts perform administrative and managerial duties, making them directly liable to pay Goods and Services Tax under the forward charge mechanism, rather than shifting the tax burden to the client.

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