Since the assessee's turnover has exceeded the registration threshold of ₹18,00,000 in FY 2024-25, they are now liable for compulsory registration under GST.
Compulsory Registration As the assessee has crossed the threshold limit, they need to register under GST.
This registration is compulsory, regardless of the payment made to the advocate. GST under Reverse Charge Mechanism (RCM) For the payment of ₹8,000 made to the advocate, the assessee is liable to pay GST under the Reverse Charge Mechanism (RCM).
This means the recipient of the service (the assessee) is responsible for paying the GST, not the advocate.
GST Rate and SAC Code The GST rate applicable for legal services is 18%, and the SAC code is 9982. Conclusion In summary, the assessee needs to take compulsory registration under GST due to exceeding the threshold limit.
Additionally, they are liable to pay GST under RCM for the payment made to the advocate.
The RCM treatment for legal services depends on the provider type. When an individual advocate or a firm of advocates provides legal services to any registered business entity, RCM applies and the recipient pays 18% GST. If the recipient is unregistered or an individual non-business person, the services are exempt. CA and accounting firms are not covered under legal service RCM and charge GST on their invoices directly. For the full breakdown including SAC codes, advocate vs firm treatment, and how RCM ITC works, this [GST on professional services guide](https://taxgarden.in/blog/gst-on-professional-services-ca-legal-consulting-india-2026) covers the current rules.
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