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Do lawyers have to pay gst?

Rajat (one) (33 Points)

27 August 2019

1) Is GST attracted to Legal Service rendered by a Lawyer? If yes, at what rate?

2) Are Lawyers which are receiving yearly income of less than 50 lacs and those receiving more than 50 lacs covered under seperate provisions- What are they?

3) If a Lawyer is also receiving Commercial Rent and his Annual Turnover (Legal Fee+Rent) is more than 20 lacs, then what is the implication of that? Does he require to take GST Registration and will he also have to add GST in his Legal services Bill?

Thanks in advance

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2 Replies

Anshuman Basu (account -GST) (1550 Points)
Replied 27 August 2019

legal firm is RCM.

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 27 August 2019

1. No
2. There is separate provision
3. Yes in this case the lawyer is liable get himself registered.

As per Notification 13/2017 CT (R) legal services by lawyer is under RCM & As per Notification 5/2017 CT , the person supplying taxable services & goods ,the total tax on which is liable to be paid by Recepient on RCM , the supplier is not required to Obtain Registration.
But as you are also supplying rental services (Not cover under 9(3)) , hence your Aggregate Turnover exceeds the threshold limit as prescribe in Section 22 , you are. liable Obtain Registration & you are also liable charge GST on FC (only on Rental Services)