Advocate firm

11 January 2019
My client has a small firm. He has no GST registration (UR Party). He received an advocate bill for Rs.50,000/-. In the bill the Advocate Firm clearly mention that GST WILL BORN BY PARTY.
When we make a payment The advocate asked 18% GST along with Rs.50,000/- to be paid.
Now what is the rule of Advocate bill? If service receiver is unregistered then who will liable to pay tax

11 January 2019
Assuming the aggregate turnover of the unregistered recipient in the preceding financial year is less than 20lakh, the advocate services is exempt, hence no GST is required to be paid.
Thanks and regards
CA Shubham Sharma
Contact No.9462302922

Udaya Chandran (Expert)
11 January 2019
There is no turnover limit for those recipient of services specified under RCM. If any unregistered person receives services as mentioned under RCM, they need to take compulsory registration and discharge the liability.

11 January 2019
Sir, In accordance with entry no. 45 of the notification no.12/2017-CGST ( Rate) ..the Services of an advocate is exempt if it is received by a-
2.a person other than business entity
3. a business entity with the agreggate turnover in the preceding financial year upto Rs 20 lakh.
Hence, in my humble opinion if the case of the assessee falls within the ambit of above exemption registration is required to be taken otherwise complusory registration is required.

Udaya Chandran (Expert)
11 January 2019
Yes, I agree with Mr.Sharma. I didn't notice the firm receiving the service is an advocate firm, if not GST to be paid under RCM.

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