Payment of Legal Fees to advocate

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This discussion clarifies the Goods and Services Tax (GST) implications when paying legal fees to an unregistered advocate. The company, being GST-registered, must pay GST under the Reverse Charge Mechanism (RCM). The GST is paid directly to the government via Table 3.1 D of Form GSTR-3B, and does not need to be declared in GSTR-1.

pavan kumar bejjenki

pavan kumar bejjenki (Querist)

21 December 2022 Dear Sir(s)
We have paid Legal Fees to Advocate who is providing Legal Consultancy.
As the Legal Fees is subject to RCM. The advocate is not registered and company as registered under GST we have to pay GST under RCM
I WANT TO KNOW
1. THE PROCEDURE FOR PAYMENT OF RCM
2. WHETHER WE HAVE TO SHOW IN GSTR-1 OR 3B
I request your goodselves to please clarify the same..
Thanking you
pavan

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 December 2022 Recipients of goods, services & supplies those are liable to RCM need to be pay the GST as per the usual tax rates, directly to the government via Form GSTR-3B. Recipients need to furnish Table 3.1 D of GSTR-3B to pay the GST liable to RCM.
No need to show it in GSTR 1.

pavan kumar bejjenki

pavan kumar bejjenki (Querist)

21 December 2022 Thank you very much sir

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