Advocate Services - Place of Supply
This query is : Resolved
06 June 2024
A Delhi Law Firm has GST Registration number and charges IGST on the Bill. We are recipient of services registered in Rajasthan. In this case should we pay IGST or CGST on RCM Basis. We are paying IGST on RCM Basis.
In case of unregistered Delhi Law Firm, they do not charge anything, so we are paying CGST/SGST as we are registered entity
Please advice
In case of unregistered Delhi Law Firm, they do not charge anything, so we are paying CGST/SGST as we are registered entity
Please advice
07 June 2024
Pay IGST as law firm registered in Delhi, interstate supply of service.
Message likes :
1 times
10 June 2024
Even if Delhi Law firm is unregistered, you will pay IGST as address of Delhi Law firm is available in your records.
10 June 2024
Dear sir
As per place of supply rules section 12(2) where services are made to a registered person, the location of the recipient shall be considered.
Here when the supplier is unregistered, why the location of the supplier is considered. Please quote the Section or provision for the same.
Please throw some light when the supplier is unregistered under RCM
As per place of supply rules section 12(2) where services are made to a registered person, the location of the recipient shall be considered.
Here when the supplier is unregistered, why the location of the supplier is considered. Please quote the Section or provision for the same.
Please throw some light when the supplier is unregistered under RCM
13 August 2025
Key Points: Place of Supply & RCM for Services from Unregistered Supplier
1. Place of Supply Rule for Services to Registered Person
Section 12(2) of IGST Act says:
"The place of supply of services, except the services specified in sub-sections (3), (4) and (5), made to a registered person shall be the location of such person."
This means for services received by a registered person, the place of supply is the location of the recipient (your place).
2. What if Supplier is Unregistered?
GST is generally not applicable on unregistered suppliers because they are not under GST coverage.
But under Section 9(4) of CGST Act, in certain cases (like services from an unregistered person to a registered person), RCM is applicable to the recipient.
For these RCM services, the recipient must pay GST based on the place of supply determined under IGST Act.
Since place of supply is location of recipient (Section 12(2)), IGST or CGST+SGST applies based on whether it is interstate or intrastate supply.
3. Interstate or Intrastate Supply?
Place of supply = Location of recipient (you in Rajasthan).
Location of supplier (Delhi) is irrelevant for determining place of supply under Section 12(2).
But since supplier is unregistered and GST is to be paid under RCM by recipient, GST is levied on recipient on intrastate or interstate basis depending on recipient and supplier location.
4. Is IGST or CGST+SGST payable under RCM in this case?
For RCM on services from an unregistered person:
If the supplier and recipient are in the same state → CGST + SGST.
If supplier and recipient are in different states → IGST.
But in your case, supplier is Delhi (registered or unregistered), recipient is Rajasthan (registered).
Therefore, this is an interstate supply → so IGST under RCM is applicable.
5. Summary Table
Scenario Place of Supply GST to Pay under RCM
Registered Delhi law firm → Registered Rajasthan recipient Recipient (Rajasthan) IGST (Interstate supply)
Unregistered Delhi law firm → Registered Rajasthan recipient Recipient (Rajasthan) IGST (Interstate supply)
Unregistered Rajasthan law firm → Registered Rajasthan recipient Recipient (Rajasthan) CGST + SGST (Intrastate)
Legal references for your understanding:
Section 12(2), IGST Act – Place of supply for services to registered person.
Section 9(4), CGST Act – Tax liability on recipient under RCM for services from unregistered supplier.
Notification No. 13/2017-Central Tax (Rate) – Specifies categories of services under RCM including services by unregistered advocates.
1. Place of Supply Rule for Services to Registered Person
Section 12(2) of IGST Act says:
"The place of supply of services, except the services specified in sub-sections (3), (4) and (5), made to a registered person shall be the location of such person."
This means for services received by a registered person, the place of supply is the location of the recipient (your place).
2. What if Supplier is Unregistered?
GST is generally not applicable on unregistered suppliers because they are not under GST coverage.
But under Section 9(4) of CGST Act, in certain cases (like services from an unregistered person to a registered person), RCM is applicable to the recipient.
For these RCM services, the recipient must pay GST based on the place of supply determined under IGST Act.
Since place of supply is location of recipient (Section 12(2)), IGST or CGST+SGST applies based on whether it is interstate or intrastate supply.
3. Interstate or Intrastate Supply?
Place of supply = Location of recipient (you in Rajasthan).
Location of supplier (Delhi) is irrelevant for determining place of supply under Section 12(2).
But since supplier is unregistered and GST is to be paid under RCM by recipient, GST is levied on recipient on intrastate or interstate basis depending on recipient and supplier location.
4. Is IGST or CGST+SGST payable under RCM in this case?
For RCM on services from an unregistered person:
If the supplier and recipient are in the same state → CGST + SGST.
If supplier and recipient are in different states → IGST.
But in your case, supplier is Delhi (registered or unregistered), recipient is Rajasthan (registered).
Therefore, this is an interstate supply → so IGST under RCM is applicable.
5. Summary Table
Scenario Place of Supply GST to Pay under RCM
Registered Delhi law firm → Registered Rajasthan recipient Recipient (Rajasthan) IGST (Interstate supply)
Unregistered Delhi law firm → Registered Rajasthan recipient Recipient (Rajasthan) IGST (Interstate supply)
Unregistered Rajasthan law firm → Registered Rajasthan recipient Recipient (Rajasthan) CGST + SGST (Intrastate)
Legal references for your understanding:
Section 12(2), IGST Act – Place of supply for services to registered person.
Section 9(4), CGST Act – Tax liability on recipient under RCM for services from unregistered supplier.
Notification No. 13/2017-Central Tax (Rate) – Specifies categories of services under RCM including services by unregistered advocates.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales return eway bill
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- REGARDING GST LIABILITY/....
- STCG FOR GOLD ETFs
- TDS related Query_Liquidated Damages
- Specified Profession
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
